MARKETING ANALYTICS: Casual Clothing Market

competitor analysis based on different parameters

Marketing Analytics: Case Studies

© Stephan Sorger, 2013; www.StephanSorger.com 1

MARKETING ANALYTICS: Case Study Name: ____________________ © Stephan Sorger 2013; www.stephansorger.com Date: ________________________

Case No. Chapters Case Title

4 4 Competitive Analysis: Casual Clothing Market

Background: You are the marketing manager for Acme, a new brand of casual clothing. You compete with several established companies in the $1.4T global apparel market. Here are but a few:

Abercrombie American Eagle Banana Republic Gap Hollister

J. Crew Old Navy Ralph Lauren Urban Outfitters Zara

Acme is a new brand and has the ability to “fashion itself” into the company it needs to become to be successful. What it needs is a direction, and executive management is looking to you to provide it. 1. Select three competitors and enter their information in the Competitive Comparison Framework below.

Competitive Attribute Competitor: Zara Competitor: Competitor:

Market Share/ Revenue

$8B Zara/ $12B Inditex (2008)

Messaging

High fashion/ Low cost

Competitive Advantage

Skill at rapid international expansion

Products Constantly updated

Pricing Low

Distribution Sexy retail environment

Promotion Drive traffic to retail store

2. Conduct a SWOT-PEST analysis for the three competitors.

SWOT-PEST Competitor: Zara Competitor: Competitors:

S: Strengths

2008: world’s largest clothing retailer

W: Weaknesses

Brand awareness still somewhat low in U.S.

O: Opportunities

Capture market share from fading Gap sales

T: Threats

Might overextend itself from aggressive growth

P: Political Possible new tariffs to discourage imports?

E: Economic Poor economic climate hurt 2007-2011 sales

S: Social Ever-changing fashion fads; skinny jeans out!

T: Technological Increasing emphasis on use of bio friendly fabrics

3. Identify three candidate market opportunities using the table below, then indicate how you select a winner.

Market Opportunity Opportunities: Zara Acme Candidate Market Opportunities

New Market Segment Sell clothing to Haute Couture market segment

Go To Market Approach Offer exclusively local- manufactured clothing

Differentiating Functionality

Garments made of bio- degradable fabric