Fashion

An Integrated Approach to a Fashion Marketing Communications Campaign: An Analysis

1.      Introduction: French Connection U.K

French Connection UK, commonly know as FCUK as a result of its ground breaking advertising campaign in fall 1997, is amongst the leading apparel retailers for teenagers. French Connection completely redefined the ways a teen and twenties market could be targeted. The FCUK campaigns focused on distinctive competency of the brand being fashionable rather then a fashion victim. The brand was all about independence, unpredictability and humour. The campaign was a massive hit. Seven years later, fall of 2004, FCUK is still successfully using the initial concept but has bought about tremendous change in its communication mix. These innovative efforts have made it possible for FCUK to sustain its sales levels for almost a decade (Fernie & Moore 2003, p. 119). The fall 2004 campaign was launched without any logo or brand name anywhere. Building on existing hype regarding the brand, a ‘biker’ theme was used. Following is discussion on the implementation of fall 2004 – winter 2005 marketing campaign of FCUK with respect to creative marketing and integrating a successful communication mix.

2.      Marketing Campaign Objectives

Instead of creating a clothing line, French Connection was aiming to establish a brand with distinctive competencies. It had positioned FCUK very successfully in future and wanted to capitalize onto the brand equity already created.

The purpose of the renewed campaign was not to re-position the brand but to re-frame the brand by adding the attitude factor into it. Marketing managers wanted the customers to perceive FCUK as synonymous to attitude. The brand already had a strong personality. The attitude in fall 2004 was going to be an addition to the existing attributes of that personality. As mentioned above that FCUK was building onto its existing brand equity. Attitude is one attribute that had the capability to sustain the brand in the new millennium for quite some while.

However, it was equally challenging for marketers to come up with a campaign in sync with past projects and campaigns. They aim was to make the campaign distinctive yet in tune with core values of the brand that have established in the consumer’s mind as a result of past campaigns. Also, it should compliment the ‘feel’ and ‘look’ of FCUK outlet, giving customer a complete experience rather then only core product (CIM fcuk, n.d.).

3.      Modes of Marketing Communication

Marketing communication modes are the means by which firms attempt to inform, persuade and remind customer about their products and brands. These communication channels are equally advantageous for consumers because awareness regarding product offerings and there benefits is created (Kotler & Keller 2006, p. 536).

                    i.      Advertising

Television: Advertising is paid form of message delivery done through television, print media or radio (Kotler & Keller 2006, p. 536). Advertising for fcuk fall 2004 campaign was mainly done on television using a 60 second television commercial. Interestingly, nowhere in the advertisement or campaign the brand logo or a specific slogan was mention. Yet the message was simple and comprehendible to target audience when it said ‘something beginning with f’ and ‘buy our denim’ (fcuk advertising 2004).

Print Media: Print media is very effective in this age when magazines for young adults have strong power over creating perception and association in consumer’s mind. FCUK reached its market using extensive, glossy, one page advertisements in several magazines starting September (Urban Legend Reference Pages n.d.). The whole page advertisement also appeared in local newspapers. Print ads appeared throughout the campaign, i.e. till early spring frequently after small intervals (Dey 2005). Cosmopolitan, Marie Claire, FHM and Maxim were used for monthly advertisements. These magazines helped targeting twenty-something audience (Moore 2003). For targeting younger population Seventeen and Teen People were used as a communication channel (Howard 2003).

                  ii.      Sales Promotion

Sales promotion refers to short term incentives to customers to encourage trial or purchase (Kotler & Armstrong 2004, p. 486). FCUK had just launched its new fragrant “Scent to bed”. A promotional campaign was already underway for the product and was consolidated with the marketing campaign of fall 2004. At every purchase in FCUK stores, the customers got a free ‘Scent to bed’ t-shirts and ‘License to FCUK’ cards, which had a code imprinted over them. Customers were to enter that unique code to each card on to the website www.scenttobed.com for a chance on a trip for six to Club Med (Howard 2003).

                iii.      Events & Experiences

From time to time companies sponsor events, activities or programs to create brand related interactions (Kotler & Keller 2006, p. 536). FCUK is also actively working to innovate and increase customers’ brand experience. FCUK FM was launched in the summer of 2004 to enhance the customer-brand interactions. The radio station was a rock-based music station playing in FCUK outlets all over world, selective alliances and was live-cast on the website of FCUK FM. This was done to set the ground for and was in complete sync with the advertising campaign built around the ‘bike’ theme (fcuk FM 2007).

FCUK also launched a flavoured vodka drink in bars in UK for cross branding as well as grabbing attention of different media circles and consumers (Varley, 2006).

                 iv.      Public Relations

Public Relations are non-paid messages that a third party conveys it to target consumers of a brand. It can be newspapers or experienced customer’s word of mouth (Kotler & Keller 2006, p.536). As mentioned above that ‘Scent to bed’ was recently launched, which was done in a launch part. The launch party was a major success and attracted several hundred distinctive personalities of UK. It also earned fcuk acknowledgement in PR-circles and media. The part was held in New York. The invitation cards were given away at stores in hotel doorknob hangers that read ‘FCUK in progress’ (Howard 2004).

                   v.      Direct Marketing

Direct marketing is a new age communication tool using email, mobile or telephones for marketing the product. to the target consumers (Kotler & Keller 2006, p. 536). FCUK was perhaps amongst the first brands to introduce mobile marketing. This was done in the same year as launch of FCUK FM. The concept, in fact, initiated from the FCUK FM. The participants were to answer three music trivia questions via SMS to win a $250 FCUK gift certificate. They could also receive the FCUK FM programme schedule through SMS alerts and download FCUK mobile content such as wallpapers, ring tones etc. directly into their mobile phones. This enabled FCUK to collect customer information for direct marketing in future (MMA.com 2004).

FCUK also ensured its cyber presence with a website that contained its clothing line information and branding detail. The site also enabled consumers to play games online, it also offered giveaways to consumers having ‘license to fcuk’ such as sample of ‘FCUK Vanity’ makeup line products (brandchannel.com, 2004).  While a specialized website for women FCUK clothing www.fcukbuymail.com was also launched (fcukbuymail.com 2007).

4.      Evaluating Effectiveness

Ultimate objective of integrating marketing communication mix is to achieve a high impact campaign that creates awareness, knowledge, develop consumer preference and result in purchase (Kotler & Keller 2006, p. 583).

Communication-Effect: Concerning the effectiveness of communication as a awareness creating tool, the above campaign caused the traditional FCUK stir. It got consumers and non-consumers to talk about the brand, increasing its mind and heart share. Thus, its objective to reinforce the product was achieved efficiently.

Sales-Effect: However, the economic results for the autumn campaign were not what were expected. The profits were £32 million dropping £37 million. However, the French Connection chief operating officer defending the stance of brand said that it is not the advertising and branding that has failed the trends during the year were more cutting edge then our designs and we intend to focus on that as well in future (Tran 2004).

5.      Conclusion

Despite integrating marketing communication being a crucial aspect of a marketing strategy, it is not sole driver of product purchase. Consumer behaviour is a complex and result of several economic, social and environmental factors. It is important for businesses to realize that when it is right for to pursue which branding objectives and strategy. Incase of FCUK the marketers did not experiment with a expiring concept for a long time. Finally in 2005, French Connection UK dropped the FCUK slogan from its advertising campaigns and once again became French Connection (CNN.com 2005).

Bibliography

Brandchannel.com – It’s Online, But Is It In Line? 2004. Retrieved March 5, 2007 from http://www.brandchannel.com/features_webwatch.asp?ww_id=162

Chartered Institute of Marketing French Connection UK Case Study n.d. Retrieved March 5, 2007 from http://www.cim.co.uk/mediastore/FCUK.pdf

CNN.com ‘Fashion Firm Drops FCUK Slogan’ 2005. Retrieved March 5, 2007 from http://edition.cnn.com/2005/BUSINESS/10/03/fcuk.slogan/index.html

Dey, I., FCUK? Why Trendy Young Things No Longer Swear By It 2005. Retrieved March 5, 2007 from http://scotlandonsunday.scotsman.com/business.cfm?id=1954542005

FCUK FM 2007. Retrieved March 5, 2007 from http://www.frenchconnection.com/fcukfm/fcukfm.htm

FCUK – History of French Connection UK Advertising 2007. Retrieved March 5, 2007 from http://www.fcuk.com/fcukadvertising/

FCUKBUYMAIL.com 2007. Retrieved March 5, 2007 from http://www.fcukbuymail.com

Fernie, J., Fernie, S., Moore, C., 2003, Principles of Retailing, Elsevier, United Kingdom

Howard, T., Teen Fragrance’s Titillating PR Push Could Create A Stink 2003. Retrieved March 5, 2007 from http://www.usatoday.com/money/advertising/2003-09-10-fragrance_x.htm

Kotler, P., Keller, K., 2006. Marketing Management, Prentice Hall, New Jersey

Kotler, P., Armstrong, G., 2004. Principles of Marketing, Prentice Hall, New Jersey

Mobile Media Association- FCUK Uses Mobile CRM in First Transatlantic Mobile Marketing Program 2004. Retrieved March 5, 2007 from http://www.mmaglobal.com/modules/wfsection/article.php?articleid=8

Moore, J., TVC – Common Voice 2003. Retrieved March 5, 2007 from

http://www.commonvoice.com/article.asp?colid=1033

Tran, M., Fcuk Fashion Firm Slumps In Value 2004. Retrieved March 5, 2007 from http://business.guardian.co.uk/story/0,3604,1352633,00.html

Urban Legends Reference – FCUK 2003. Retrieved March 5, 2007 from http://www.snopes.com/inboxer/outrage/fcuk.asp

Varley, R. 2006, Retail Product Management: Buying and Merchandising, Routledge, United Kingdom

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Ethics in fashion Brands such as Hollister, Superdry and Jack Wills are in high demand at the moment. These fashion giants make billions of pounds a year selling top of the range clothing, specifically designed for 14-18 year olds. These brands all follow strict ethical policies, for example Jack Wills is part of the Ethical Trading Initiative, which is an alliance of companies working together to improve the lives of poor and vulnerable workers in the countries in which these clothes are produced.

Although over half of Britain’s consumers think that the ethical production of the clothes they buy is important many companies cast a blind eye towards the production environment of their clothes. Their workers may have decent working conditions, get paid fair wages most of the time. A problem is the conditions and wages of other workers, who may not be directly employed to the company. These are called sub-contractors. Such things often take place in third world, developing countries, and are usually a first step for industrialising economies.

This has already resulted in widespread poverty reduction, access to skills and sustainable livelihoods for some of the most disadvantaged communities in the world. For example, in Bangladesh 70% of GDP (gross domestic product) comes from the fashion industry. However it is not just the production of these clothes that makes the public question their morals, problems have arisen within the stores. In August 2011 Hollister were charged with discrimination towards one of their Muslim employees, who was criticised for wearing a hijab in store.

Months later two stores in America were noticed for not following the Disabilities Act, due to the fact that they have a porch-like entrance that contains steps while customers in wheelchairs have to access the stores through automatic side doors rather than the main entrance. Customers felt that they were being ‘separated’. Furthermore, in November 2010, Hollister prevented an employee from wearing a red poppy into work. This sparked controversy, and attracted unwanted attention from the media.

Human rights activists have also pointed out the various ethical issues behind the preparation of fashion products. When companies are not following a strict policy, and sometimes even when they are, workers can be treated very badly. Extremely low wages, long hours, unsafe working conditions and harassment are some of these issues. Additionally, environment protection activists have brought up ethical issues related to the fashion industry time and time again. The main complaint is about the production of cotton, and how a large amount of pesticides are used.

The use of toxic pesticides leads to air, water and soil pollution. These are detrimental to the health of the workers applying them, and people living nearby. All of these issues would have been impossible to unearth had it not been for the power of the media. Technology such as mini cameras and microphones made it possible for journalists and in some cases the ordinary public, to go undercover into one of these stores. The media can also publish stories and pictures to a wide range of people, thus making more people aware.

The concept of ethical fashion is old; however it has gained more popularity recently. This may be due to the fact that fashion is changing and developing even more resulting in unethical shortcuts being made. These shortcuts may not always be in the best interest of the environment, or indeed the employees. Also, as awareness about environment conservation, cruelty to animals and ethical issues in business is rising, fashion brands are also increasingly adopting ethical means. Customers are also becoming more aware, and consequently the demand for ethically produced clothing is on the rise.

Within the global sporting goods market, there are three major companies all striving to become the dominant force in the industry. Throughout history, each of these companies has held that title. However, with the US market for athletic footwear and apparel valued alone at over $US45billion (Katrichis, 2002), all three companies are aiming to outperform the others. At present, Nike clearly leads the way in the global sports brand market with a 43% market share. Adidas runs second. It claims to have a 12% share, just in front of Reebok (Dabkowski, 2002).

To understand how this industry has developed, the strategies of the three dominant businesses’ in the following areas need to be considered.

2. 0 Market Positioning

Historically, Adidas has promoted an image of seriousness and quality, targeting the serious athlete who was after authentic sporting goods (Boissonnas et al, 1998). However, recent changes in the sporting goods market has forced Adidas to alter this image, aiming their products at the most profitable market segment, the 12-34 age group, who are more concerned with fashion than quality.

The firm believes that by dividing the company up into specific departments it can “best develop and market innovative products, meeting the needs of today’s diverse consumers (adidas. com). ” Further to this, the company has also had to review the geographic regions it promotes its products in. Sales in Europe, Adidas’ largest market grew 7%, to $2. 7 billion, last year. Adidas’ sales are growing fastest in Asia, where revenue rose by 15%, to $878 million in 2001 (Reuters, 2003). When Nike first entered the sporting goods market, one of the core competencies it achieved was the company’s association with top athletes.

This strategy, a first for the time, enabled Nike to develop a sustainable competitive advantage in the industry. Furthermore, this association appealed strongly to the youth market. Now, Nike dominates the 12- to 34-year old age bracket. The three highest selling segment – basketball, cross training and running – are also the highest spending segments. Nike is the market leader in each of these segments (Gaffney, 2002). Increasingly, fashion has had a major bearing on the market. As a result, athletic gear was no longer reserved for exercise; instead, the concept of leisurewear emerged.

Nike has been best able to adjust to changing trends in the industry. As casual wear expanded outdoors, Nike introduced its ACG range to counter this. As young people determined market trends, Nike began advertising on MTV to promote their company to this evolving market (Boissonnas et al, 1998). Reebok is strongest in the over-45 age segments and weakest in the 12-34 age segments. The over-45 group may have the most disposable income, but the 12-34 age groups purchase athletic shoes much more frequently and are also willing to spend more on shoes for fashion and “coolness” (Orphin, 2001).

Therefore it can be said that Reebok is not properly targeting the most profitable segments in the athletic-shoe market. Reebok appeals more to women, yet they spend $7 less per pair of athletic shoes, on average. Reebok holds a commanding lead in the aerobic footwear market, at 52% (ibid). The primary problem Reebok faces is one of positioning. This is directly related to its target markets, which are misaligned with the focus targets of the athletic shoe market. As mentioned above Reebok’s strengths lie where Nike, its largest competitor, is the weakest.

While this may seem like an advantage for Reebok, it is not. The segments controlled by Nike are the highest-spending segments in the market, while the segments in which Reebok is strongest spend the least (Gaffney, 2002).

3. 0 Marketing / Advertising

“A brand is recognized widely by business people and academic researchers alike as one of the most sustainable, and hence, valuable of all competitive advantages (Hanson and Dowling, 2002). ” All three sporting good companies in this report have focused heavily on developing strong brand recognition.

All told, athletic footwear makers spent more than $5. 9 billion on advertising and celebrity endorsements last year (Gaffney, 2002). A report aimed at valuing a specific brand estimated that the brands of Nike and Adidas were worth $8. 15bn USD and $3. 60bn USD respectively (Tomkins, 1999). The reason behind this massive capital investment, according to one industry analyst, is that “the U. S. athletic business is as flat as a pancake in terms of overall consumption, so it’s all about market share (Stanley, 2003).

” Unable to grow the industry further, sporting companies such as Adidas have to take market share off competitors. In the past, Adidas’ marketing advantage has developed from endorsements of international sporting events such as the Olympic Games and the FIFA World Cup Soccer. At the 1952 Helsinki Games, Adidas footwear was first used. By the 1976 Montreal Olympics 80% of medal winners were wearing Adidas shoes (Boissonnas et al, 1998). However, with new players such as Nike entering the market, there was a distinct shift in the marketing focus.

Herbert Hainer, who took the helm at Adidas-Salomon in 2000 from Robert Louis-Dreyfus, reduced the Adidas marketing budget from 14% to 12% of sales, focusing the company’s marketing efforts on key athletes and select sponsored events (Kitchens, 2002). At the same time, Adidas’ reduced the number of national teams and international events it sponsored. Key athletes/teams that Adidas sponsors include Football – David Beckham, Zinedine Zidane, Real Madrid Swimming – Ian Thorpe Tennis – Anna Kournikova Basketball -Tracy McGrady, Kobe Bryant (ended 2002)

Combining this with the sponsorship of international tournaments such as the FIFA World Cup, Adidas is following a similar strategy that Nike first developed. The key strategy behind Nike’s success has been the endorsement of international superstars. Specifically, the company has targeted athletes in the sports that dominate sales in the footwear market, such as Michael Jordan and basketball, as well as targeting sports that are popular in growth markets the company is targeting, an example being the sponsorship of the Brazilian Soccer team, helping Nike impact the South American market.

It was estimated the company spent $US200million to sponsor the Brazil team (Cox, 2000). More than any other company Nike has been able to secure the signature of major sporting stars. According to Nike CEO Phil Knight, “by providing sporting apparel that appeals to professional athletes… the rest of the market will follow (Boissonnas et al, 1998). ” Paying Michael Jordan $US20million a year to endorse the Air Jordan brand has generated untold sales revenue for Nike. Other athletes that Nike endorses are Tiger Woods (golf), Ronaldo (soccer), Lleyton Hewitt (tennis); all considered masters in their respected fields.

Reebok initially experienced success in the female sporting and fitness market. In view of that the company has had to focus its advertising on promoting Reebok as more than just a fitness company. The company has followed a similar strategy to Adidas and Nike, sponsoring world-class athletes to increase the company’s exposure. NBA Most Valuable Player Allan Iverson and Manchester United winger Ryan Giggs are the most high profile Reebok sponsored athletes. Reebok has been criticised for not investing enough in stable athletes or advertising campaigns.

The average lifep of a Reebok ad campaign in the 1990s was less than 2 years, while those of its major competitors, such as Nike’s “Just Do It,” lasted throughout the decade and established product identity with its customers. Instability in advertising has hampered Reebok’s attempt to establish a strong brand presence (Orphin, 2001). 4. 0 Conclusion This report has shown how the sporting goods market has developed as a result of the strategies implemented by Adidas, Nike and Reebok. Also we suggest globalisation of Adidas

It has been clear that as the market has developed, Nike has been the one company that has best dealt with the changing trends in the market, indeed, even driving some of the trends. As the spending patterns of the industry has changed in recent years, Adidas, Nike and Reebok have endeavoured to position themselves in the market to take advantage of such movements. Adidas and Reebok have had the biggest difficulty making these modifications. Nike, benefiting from being the most recent entrant into the market, has been able to capitalise on the youth oriented market and ultimately generate greater sales revenue and market share.

Nike has also been able to exploit its competitive advantage to maximise wealth to shareholders. The company’s strategy of endorsing world-class athletes has evidently proven more effect than Adidas’ approach of supporting international sporting events. Adidas and Reebok have responded to this by following Nike’s approach, endeavouring to attract the teenage market to their products. For Adidas to take market share away from Nike and the other competitors in the sporting goods sector, the company will need to develop marketing strategies that exploit the trends emerging in this multi-billion dollar industry.

References

Adidas Salomon Strategy – www. adidas. com. 14 May, 2003.

Boissonnas, G, Hilliard, U, Horovitz, J. 1998. Adidas. International Institute for Management Development. Cox, S, 2000. Behind the Swoosh. Victoria International Development Education Association.

Dabkowski, S. 2002.Chairman of Adidas touches base. The Age, April 17, 2002.

Gaffney, J. 2002. Shoe Fetish. Business 2. 0 Magazine. March 2002.

Hanson, D, and Dowling, P. 2002. Strategic Management: Competitiveness and Globalisation. Pacific Rim Edition. Nelson Publishing.

This wasn’t quite how Kim Kardashian West planned to spend her Paris Fashion Week.

Kardashian West predicted a week of Balenciaga runway shows and Balmain after parties in Paris with mother, Kris Jenner, and sisters Kendall Jenner and Kourtney Kardashian. Unfortunately, events took a major turn.

Related:

Last night, and reality TV star Kim Kardashian West was held at gunpoint by two men dressed as police officers in a private apartment in Paris, reports.

The concierge of the rented apartment, which is a unit within a private luxury mansion, was threatened with a weapon by five men, handcuffed and forced to open the celebrity’s private unit, the French Interior Ministry said.

Of the five, two men broke into Kardashian West’s bedroom, where they held her at gunpoint and stole up to $10 million worth of cellphones and jewelry.

Her children were not present during the armed robbery, according to , but a spokeswoman for the celebrity said Kardashian West was “badly shaken but physically unharmed.” No one was hurt and no shots were fired.

Related:

So where was hubbie during all of this? During a performance at The Meadows Music & Arts Festival in New York on Sunday night, West abruptly left the stage after announcing to fans that he had a “family emergency.”

Due to an emergency, Kanye West had to end his performance early. Please get home safely.

— The Meadows NYC (@themeadowsnyc)

Startled, fans thought this was another Kanye West stunt. As it turns out, this was no Taylor Swift jab — the artist left to console his family.

After speaking with police, Kardashian West left Paris this morning. The suspects are still at large, CNN reports.

Early this year, former CIA operative Drew Dwyer shared his nine-step hotel safety checklist. You can read his advice .

Introduction

How does and exclusive brand such as Louis Vuitton grow and stay fresh while retaining its cachet?

Louis Vuitton brand has continued growing and staying fresh while retaining its cachet due to increasing its emotional branding, sensuality, associated mystery and intimacy to their customers. It can increase storytelling and brand narratives due to its service differentiation in its store sand. It will continue growing because it has opened several shops in the world.

Paris shop was the first to be opened in 1854 and they are aiming to open several outlets in China, Japan and other European countries. Louis Vuitton also made internet her first priority to advertise its brand, after they created their website and started posting blogs about their product; they received millions of emails from different continents.

Internet has worked as one of the key factors why the LV Company has grown at a high percentage; they sell their products online and provide free shipping which made their product saturate the entire world hence advertising itself and the company. Luxury sector was another key figure that LV is using to grow and continue staying fresh; this is because they educate new clients and reinforce their position in emerging markets (Kapferer & Bastien, 2012). This luxurious advertisement introduced the Louis Vuitton to a new chapter of extension products categories to virtual products beyond physical products; this was done by the launching of the soundwalk.

The brand grows every day because of their art; Louis Vuitton products are made in a special way where their designers use a combination of art to produce the best products. The signature which was introduced in 1854 by Louis Vuitton markets their products globally since most of the companies use his signature on their products (Okonkwo, 2010).

The introduction of their magazines and advertisement wall papers which have been pinned in many offices, hotels and places where workers always take their meal have acted one of the main style of advertising their products. The use of LV products with top celebrities like Madonna has made their goods popular and everyone want to get the exact product so that they can look similar like that of their celebrity (Jimenez $ Kolsun 2014).

The LV big achievement is the launching of their television which only focuses on fashion and luxurious travelling. They use the television to broadcast and market their new brands.

Is the counterfeiting of Louis Vuitton always a negative? Are there any circumstances where it can be seen as having some positive aspects?

Counterfeiting of Louis Vuitton products is not a negative impact. This increases the brand’s exciting branding and it appeals to consumer’s empathy. If Louis Vuitton sales and marketing is not interfered with its target market then counterfeiting increases their sensuality, intimacy and mystery of the brand. Nevertheless counterfeiting is a crime and those who may be caught selling these bags in an awful manner should be punished in full extent as criminals involving in human trafficking and drug trade.

Counterfeiting can be a benchmark of brand’s health making it popular and being known to a new market thus becoming the latest fashion. Those people who don’t buy new bugs but purchases fake money means they can’t afford original products always got a second thought and feeling that one day they will buy the original product.

Take an example where these original products have not reached a particular place and the fake ones are the only goods being sold in the market? That means that they are just advertising the product in that region and helps people to know that Louis Vuitton company exits, and when the original products arrives then people will scramble buying them (Tungate, 2012).

Counterfeiting only shows how the product is so strong and how good it is, this is because only the best quality product is faked. The consumer is able to differentiate between the original brand and the fake one so it is up to them to decision which to purchase. Louis Vuitton can’t say that counterfeiting is damaging their brand because brands for example Nike is the most commonly counterfeiting but what surprises majority is the brand has increased in a high percentage (Wiedmann, 2013).

Louis Vuitton opened his first shop in 1894 at Russia so if counterfeiting is damaging the brand, then the company could have collapsed a long time ago due to losses and lack of market but the company is growing and staying fresh retaining its casket thus implying that counterfeiting only got a positive impact but not a negative one

References

Jimenez, G. C., & Kolsun, B. (2014). Fashion law: A guide for designers, fashion executives, and attorneys.

Kapferer, J.-N., & Bastien, V. (2012). The luxury strategy: Break the rules of marketing to build luxury brands. London: Kogan Page.

Okonkwo, U. (2010). Luxury online: Styles, strategies, systems. Basingstoke: Palgrave Macmillan.

Tungate, M. (2012). Fashion brands: Branding style from Armani to Zara. London: Kogan Page Ltd.

Wiedmann, K.-P. (2013). Luxury marketing: A challenge for theory and practice. Wiesbaden: Gabler.

Firstly, these BOP Jobs involve an extensive usage of computers, resulting in a greater prevalence of eye problems. According to industry sources, computer use is the main driver of eyestrain that requires the use of spectacles.

Secondly, many Filipino workers at these BOP companies also enjoy an aware allowance, typically given on an annual basis, which allows them to purchase new aware products every year. Spectacles has benefited more than contact lenses from these developments as glasses are more often recommended for computer users. Aware in the Philippines was expected to end 2012 with strong growth, mainly supported by the booming business-process outsourcing industry.

Apart from higher incomes, workers at many of these outsourcing companies also receive an annual aware allowance, which has encouraged them to have their eyes checked and treated accordingly. This has translated into a stronger performance for certain types of aware, although, overall, he playing field has become much more dynamic in 2012.

Computer-linked lifestyle boosts sales of aware Using the computer and any other gadgets has now been part of Filipinos’ daily lifestyle. Filipino culture has been slowly moving from traditional to a more visual one. As of 2012, the use of computers has infiltrated nearly all households in the country.

Not only have computers become a necessity among workers, particularly those in the outsourcing industry, but Just about everyone is increasingly reliant on computers. This is true especially in terms of social networking and keeping in touch with family and friends. This increased dependence on computers has resulted in greater eyestrain incidences, which has also benefited aware sales in the country.

Nerdy Glasses Trend The “Nerdy Eyeglasses” as the name suggests, is the type of glasses which is usually assumed as those that nerd but intelligent people wear. They are pretty common and lots of guys are fond of wearing them. One of the primary reasons why many guys wear them is because of the known fact the most women are easily turned on by intelligent guys. And vice versa.

Which is why most men think that if they looked more intelligent, more women will be attracted to them. A lot of people (not only males but also females) wear eyeglasses even if they have perfect vision and does not really need it because of this notion. Gone are the days that wearing glasses is such a shame. With school in full swing and popular television shows like “Glee” back from summer hiatus and different influential personalities and celebrities, the current “geek chic” trend in fashion and aware is popping up everywhere. People are actually wanting to wear their glasses and even say, “the geekier, the better”. Now, wearing glasses is no longer disturbing.

In fact, it has been very stylish. Men and women Just like their appearance and feel very comfortable when wearing spectacle as their fashion statement Just like their idol celebrities. K-Pop Fashion Trend Another evident reason of the emergence of this trend is because of the “K-Pop Virus”. In the past five to ten years, Korean drama has been a trend in our country. A lot of Filipinos are hooked on it that the remakes of popular Korean dramas have been franchised in the Philippines. And in today’s generation, it seems that Filipinos, particularly the teenagers, are now avid fans of Korean music or what we all know as K-Pop, thus paving the way for the K-Pop Fashion.

Filipinos are exposed to Koreans hip and trendy dresses and style because many have been inspired by the stylish and funky appearance of Korean pop stars. They want to feel and look like them, and simply following the current trend, no more, no less. Indeed, this definitely took the Philippine fashion scene by storm. Of course, K-pop fashion is not Just for us girls. The men have been wearing accessories, sporting Korean hairstyles and large and Anima Trend Since the year sass’s, the “anima” trend of Japan has influenced the Philippine culture a lot and in fact, has stayed present in the society through out the years. Coplay events are evident since Filipinos want to experience how it is to be like their favorite fiction characters. Discover the question 

in a free-market system, producers are most strongly driven by which

Because of this, Special-effects contact lenses like Black sclera contact lenses, white contact lenses, wild eyes, cat eyes, and many more emerged. Also the “big eye lenses”which is inspired by the doll-eyed anima cartoon characters came out the Circle lenses which are a relatively recent phenomenon. It has been so much of a fad that even street vendors and tinges like Divisor are even selling these kinds of contact lenses. But since these products from the streets f Divisor were said as not approved by the Food and Drug Administration, selling such items are now prohibited because it has negative and unpleasant effects to the cornea and can even lead to blindness.

The government then advised the public to only purchase contact lenses from licensed optical shops in order to assure safety. Emergence of the Modern Narcissistic Filipino Far from the traditional, conservative and very masculine Filipino man, the metronome’s man has strong desire for fashion, fitness and male cosmetics. A perfect physique, clear complexion and branded wardrobe are mandatory to the new male del- the upgraded version of the pretty boy archetype embodied by the so-called SNAG or the “sensitive new-age guy’. This is a new subculture of men that are going mainstream with their lifestyle which includes excessive grooming and interest in fashion, which have typically been regarded as feminine behaviors.

Known to have egoistic and proud personalities, Filipino men of our society today are Just as conscious about their looks as the women. The “metronome’s” phenomenon has recently caught on in urban centers. They have now been very meticulous and prefer designer brands since they are very particular on how they would look. From their hair, eye wear, clothes and down to the tip of his toe, he ensures perfection. Color combination, style and grooming is now a very important routine and way of life for them. Known personalities, both local and international has largely influenced the men of today proving that the “narcissistic Filipino,” in fact, is now part of popular culture.

Consumer buying behavior Amid budget concerns, Filipinos continue to be largely bargain hunters, looking for best deals on items that would otherwise cost more during regular days, according to a study. Filipinos also tend to canvass more often in the last five years with 72 recent of those studied canvassing first before buying. This is an increase of 13 percent since 2005. Consumers who compared prices before making purchases slightly increased to 79 percent in 2010, up from 77 percent in 2005. Filipino buyers are also very loyal to the brands that they have purchased, often buying their favorite brands first than competing brands that offer promotions. During markdown sales of stocking them up for future use until perhaps the next sale. More Filipinos have also turned to promotional offerings to cut their expenses.

While Filipinos have a high agree of loyalty towards brands only 9% are likely to buy different brands due to promos close to 30% say they actively search for discounts when shopping and 40% say they purchase items on promo if it is the brand they like. One surprising aspect of the report on Filipino buying habits is that health and beauty products were top priority despite low income. Based on the study, Filipinos demand to look physically better increased since 2005 by as much as 21 percent. Metropolises are a good potential market and marketers are responding vastly to it. Since the most important thing for them is appearance and his body image, these en are more visible than ever in traditional venues such as department stores and specialty stores.

They are increasingly spending money on appearance related products and in making themselves neat and smart-looking. Most metropolises have relatively high purchasing power when it comes to making themselves look good. What they buy is highly influenced by celebrities and world-class male models. They favor highly fashionable things to wear, which drives them to favor designer and even international brands but are very meticulous in choosing products to buy.

Optical-specific

Consumer Buying Behavior Knowing Filipino people are very meticulous and value-maximizes in buying products and have such diverse and different preferences in making sure that the product is worth buying, there are several reasons why they buy or prefer specific optical products: B.

Industry Key Issues Porter’s 5 Forces Analysis Competitive Rivalry (high) Eye care industry is highly competitive and rapid technological change and evolving industry requirements and standards. The competition goes within the quality and efficacy of their products, innovation, relationship with eye care professionals and health care providers and price. It have high barriers to entry because they are highly technical, they need to have a good investment for this and also of restrictions to enter market. Threat of New Entrants (high) Optical shop such as Executive optical and Optical Shop has built their name in the industry many years and now.

Due to the large product differentiation and therefore high customer loyalty and brand recognition, the tendency for new entrants is to compete and exert much effort because it is hard to enter the market. Threat of Substitute (low) surgery provided a permanent solution to impaired vision. But then, eyeglasses or intact lenses are still preferred since it is cheaper compared to laser eye surgery. Wearing an eyeglasses or contact lenses become as a fashion wear, so you are purchasing a two offering which is for your impaired sight and for the style. Bargaining Power of Suppliers (high) Eye care industry sector is made of producers of optical products.

They are the providers of correctional lenses for glasses, frames for glasses and providers of all sorts of contact lenses. Since the consumers nowadays are brand conscious they tend to buy a branded frames and lenses so, the suppliers have a bargaining power ever the buyers. Eye care providers are all dependent to the suppliers. Bargaining Power of Buyers (low) Consumers wanted to be satisfied on what they avail for their money. They have a choice which and what brand should they use but still the store or the eye care center are dictating the price but the consumer wants a high quality product worthy of the cost for them to be satisfied. Value Chain Support Activities * Firm Infrastructure This activity includes and is driven by corporate or strategic planning.

To avoid conflict, optical shops implemented Management Information System (MIS) and other Achaeans for planning and control in different departments.

• Human Resource Management

Employees are expensive and vital resources. Optical shops needs to hire an optometrist in order for the satisfaction of the customer. They consider their employees as a human capital because they are knowledgeable enough to handle and to cater the customer needs. Here are the following techniques to retain employees:

• Recruitment
• Selection
• Training and development
• Compensation
• Maintenance
• Technological Development. Technology is an important source of competitive advantage. Optical shop need to innovate to reduce costs and to protect and sustain competitive advantage.

Also, they implemented production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other

• Procurement. This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. Optical shops will be responsible for outsourcing lenses and frames. Acquisition of materials must not be too long for the process of making an eye glasses.

Primary Activities

• Inbound Logistics

Here goods are received from company’s suppliers. They are stored until they are needed. Optical shop imports raw materials from different countries. In order to maximize the availability of raw materials, optical shop should maintain good relationship with their suppliers. Operations This is where raw materials are being processed and assembled. Optical shop must ensure that the quality of the output must meet the expectations of the customers. This will help build a strong relationship with the customers and also with the suppliers.

• Outbound Logistics

The goods are now finished, and they need to be sent along to other intermediaries that caters these final consumer.

Marketing ; Sales At this stage, optical shop prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotion mix. This creates brand awareness and makes people buy their products. Services This includes all areas of services such as repairs and adjustments of frames, free check-up and warranties. Optical shop must value their customers. C. External Market Audit Opportunities * Aware in the Philippines is in its growth stage due to the increase of BOP Jobs yet to be explored. Modern fashion/trends increases the demand for eye wear

Threats

* Alternatives like ALASKA and Laser Eye Surgery which corrects vision permanently and no longer requires the use of eyeglasses.

* Emergence of fake, imitation and relatively cheaper aware products sold in the streets of Divisor and Quip.

* Long-term usage of eye glasses * Seasonality D.

Competitive Analysis I Executive Optical I Ideal Vision I Serbia Optical I Market Position I Market Leader I Market Leader I Market Challenger I Objective Business Emphasis I To provide a service with excellent customer satisfaction. I To provide top class products to meet the expectation of selective customers. I To provide comprehensive and convenient eye care of the utmost quality. I Key Success Factors I Quality- Offers good quality products and services that provide customer satisfaction by using state-of-the-art facilities and eye care equipment. Product Feature/Design-Carrier of trendy and hippy brands like Hello Kitty, Lulu Castanet, etc. Price- Provides the best value for money by offering affordable products and services.

Distribution – E has 75 branches present in key cities in the Philippines from Metro Manila to Nag in Southern Luzon, Pangaea to Baggie in Northern Luzon, Zebu, Lillo and Backlog in Visas, and Dave City and Canaan De ROR in Mindanao. After Sale Service- Lifetime service adjustments for frame screws. I Quality- Uniquely offering fast-paced excellent eye care service and quality products has elevated Ideal Vision Center as an “eye care specialist” that is highly trustworthy and reliable. Product Feature/Design- Broad and exquisite selection of world-class aware products – from top designer aware to first-rate prescription glasses and only the finest contact lenses. Price- Has a wide pricing range since it caters to SEC C-A .

Distribution- Has close to a hundred branches nationwide; the company has established strong presence in key cities outside Manila like Baggie, Zebu, Canaan De ROR, Dipole and Dave to name a few. And to further widen the playing field, the company has set its eyes to conquer the international market. VIC has opened its first international branch in Guam. After Sale Service- Lifetime service adjustments for frame screws and nosebags. I Quality- Provides quality products and personalized services for the entire family. Product Feature/Design-Each of our clinics carry complete fashion and luxury brands as well as tailor fit product lines.

Price – Products and services are available in a wide range of prices for different customer capabilities.

Distribution- Currently has over 40 branches conveniently located at world-class malls and shopping centers to continue the tradition of caring for the Filipino vision.

After Sale Service – Lifetime service adjustment for frame screws and nosebags.

Competitive Advantage. It gives reliable eye care services and value pricing. It offers affordable price of products compared to other competitors. It also offers popular fashion eye care products like sunglasses, prescription frames, contact lenses, reading glasses, and contact lens Fast Cast Lens System to be able to deliver the fully fitted eyeglasses to clients for less than an hour. They also carry the widest assortment of brands and collection of styles that would be offered to their clients.

I Serbia Optical chain of clinics has been in the Optical Service for over one hundred years (1906-2006), and has grown into a trusted and recognized retail clinic operation for most Filipinos. I E. Brand Development “Eye-amazing! “, is a full-service optical store brand we will create in order to penetrate and take advantage one of the emerging potential markets which are the metropolises. Metropolises, being self-indulgent in making themselves very presentable and improving their physical appearance, can be considered as a very good market for the optical/eye care industry, taking advantage of the current trends present in today’s modern society like the factionists glasses being worn by various famous personalities local and international.

Because of these trends, wearing glasses is becoming more of a fashion statement, influencing both Filipino men and women who are inclined to fashion and fads. “Eye-amazing! ” would attack the competitors by taking advantage of their weak points, such as services and products hat they are still not providing the market, but can stimulate demand. In buying products, metropolises mainly considers the cleanliness, especially the customer service. They are also very fond of luxury, signature and designer brands with outstanding quality. Which is why “Eye-amazing! ” will be a full service store with highly-trained staffs and professionals, offering the best brands, services and customizable products that would be first in the Philippine market.

Introduction

Hennes and Mauritz (H&M) was first established in 1947 and have since expanded internationally and currently operate in 34 countries (H&M, 2009). As H&M continues to expand every year, the following report has chosen Australia as the new market, where analysis has been conducted to provide H&M with recommendations of which market entry method they should adopt and the threats and issues they must overcome to be able to succeed.

1.  Country Analysis – Australia

For the purpose of this report H&M (Hennes & Mauritz) has chosen Australia as the foreign country in which they wish to enter and introduce their products. Australia is the largest island, however, is also the smallest continent in the world which is situated below South East Asia (Department of Immigration and Citizenship, 2009). Being the sixth largest nation on earth it also consists of six states and two territories with the lowest population density per square metre.

As it is practically impossible for H&M to enter the whole Australian market simultaneously, H&M has, therefore, chosen Melbourne as the first Australian state they wish to enter. There are many reasons for choosing Australia and Melbourne in particular including:

• Melbourne is the second largest capital city in Australia with a population of 3,634,200 (REFERENCE).
• Melbourne is renowned as the fashion capital of Australia, where the Melbourne Spring Fashion Week (MSFW) is one of the largest and most popular consumer fashion events in Australia (City of Melbourne, 2009).
• This may then make it easier for H&M to launch their products and also obtain brand awareness, as Melbournians are relatively ‘fashion conscious’.
• New business opportunity, since 2006 there has been a 15% growth in the segment where young female consumers are demanding for low priced yet high quality and fashionable apparel (Euromonitor, 2009).
• Australia has a similar country profile as previous countries H&M has successfully entered and launched its product. Hence, H&M appears to have prior knowledge and experience in expanding internationally into a Western country.

1. Product Analysis

Hennes and Mauritz (H&M) was founded by Erling Persson in Vasteras, Sweden, in 1947. It was initially known as Hennes, which is the Swedish word for “hers”, as the company only sold women clothing. Persson purchased Mauritz Widforss a small sporting apparel company and since then formed Hennes and Mauritz (REFERENCE). The company now operates in 34 countries including Germany, France, Hong Kong, USA and the UK. H&M continues to expand internationally where they expanded into the Japanese market in 2008 and will further expand into Russia and Lebanon by the end of 2009 and Israel and South Korea in 2010 (H&M, 2009).

The core concept of H&M is to provide fashionable products at the lowest price possible, to compete with expensive department stores. H&M has 6 main product lines which include:

1. Women – diverse range of apparel pning from basic sportswear to corporate and party garments.
2. Men – includes tailored garments such as jackets to fashionable apparel that reflect the latest trends.
3. Children – is divided into three categories – babies, children and H&M Young which is aimed at children up to the age of 14.
4. Divided – targeted at teenagers and young adult, which offers fashion with a young look with creative designs that reflect those of the latest trends.
5. denim Jeans – provides both traditional five-pocket jeans to the trendiest cuts.
6. Accessories – H&M also produces its own footwear, handbags, jewellery and even cosmetics. It should also be noted that H&M does not own manufacture any products, instead they rely on over 700 independent suppliers primarily in Asia and Europe which enables them to select the best supplier (H&M, 2008).

3. Market Segments

With the diverse range of product lines, it appears that H&M has the ability to target different market segments simultaneously, this is reasonably difficult to achieve. Therefore, for the purpose of this report, two specific market segments have been selected and profiled to provide an overview of which segments H&M should specially target when launching in Melbourne.

3. 1 Profile One

Women’s outwear segment The foremost market segment that H should target would be the women’s outerwear segment which includes all garments from tops to blouses to jackets. Main reason being, this market segment is reasonably profitable with a Retail Value of over $3000 million (Refer to figure XX), where women have traditionally been the dominate consumer in the clothing and footwear industry. However, there appears to be a new social trend where men are becoming more fashion-minded and are also looking for cheaper options. In recent times, there has been a change in preference for young women, where they do not only demand for high quality yet fashionable products, it must also be low priced.

H&M should then be able to target this segment, as the company’s core concept coincides with this new trend. Where H’s women’s clothing are designed for women of all ages who are fashion minded, where its product line includes “everything from modern basics to tailored classics, sportswear, maternity clothes and cutting-edge fashion. ” (H, 2008, pg. 17). However, for the purpose of this report and to make it easier to target, the primary segment will be young women aged 18 to 24, while the secondary segment will be women aged 25 to 40.

3.2 – Profile Two – Childrenswear

The second market that H should consider targeting once the women’s outerwear market has been successfully targeted would be Childrenswear in Australia, as figure XX illustrates the steady increase in the market share of childrenswear in Australia. There are many reasons to the growth of the childrenwears market share; this may be because Australians are choosing to have fewer children. In addition, household isposable incomes have increased providing, the key buyer generally mothers, will be more willing to purchase good quality childrenwears at a low price. Therefore, H intensive range of children clothing which caters from infants to children aged up to 14, should be able to target the childrenwears market in Australia. Where the concepts for the children’s clothing are made to be fashionable, practical and hard-wearing (H, 2009).

4. Culture

Home Country, Foreign Country and Company Culture Each and every country, city and company will have its own distinct culture. There are many definitions of culture where Fletcher and Brown, 2009 has defined culture as “…prescriptive of behaviour that are acceptable to people in a specific community…learned…people are born into a culture…dynamic because…our behaviour influences the culture and culture is subjective” (Fletcher and Brown, 2009, pg. 76). It is crucial for H to have understandings of the culture of the home country, foreign country and also the company’s culture. Main reason being, cultural differences play an important role in launching and establishing H as competent competitor in the Australian market. . 1 – Swedish Culture The Swedish culture is typically perceived as egalitarian, simple and open to international influences. This may be caused due to the predominance of the Social Democratic Party where it promotes the culture of equality, pluralism and individual freedom. As the Swedish culture is relatively similar to the Scandinavian, it can be assumed as a low context cultural country in contrast to Australia. Low context culture can be classified as “… messages are mostly explicit and the words covey most of the meaning in the communication… (Fletcher and Brown, 2009, pg. 88). Meaning in Sweden people mainly communicates through words and do not place emphasis on non-verbal cues. Therefore, this culture may affect business negotiations between Sweden and Australians, due to the differences in cultural context, where Australians rely more on body language and facial expressions. In regards to the fashion culture, Sweden is greatly influenced by European fashion, where there is a strong ‘dressed up’ working man’s culture.

4. 2 Australian Culture

It is relatively difficult to identify and analyse Australian culture, in comparisons to other countries, as Australia is newly formed country and is a predominantly multicultural society where it consists of different races and ethnic groups (Live in Victoria, 2009). However, there are gradual changes to social trends which may become part of the Australian culture (REFERENCE). Similar to Sweden, Australia also has a low cultural context, yet in contrast, Australians appear to place more emphasis on non-verbal cues. Relating this to the Australian clothing culture, Australians generally dress in business attire during business hours.

Though outside of working hours, Australians tend to choose clothing that is comfortable such as track suit pants and a loose fitted t-shirt, in comparison to a pair of jeans and jacket (Department of Immigration and Citizenship). This is an important factor; H must take into consideration, as this will directly affect the products and marketing strategies used to target the market segments. For instance, as Australia appears to have a ‘laidback’ culture, it would probably suit the market more if H was able to launch products that suited the Australian culture and preferences. . 3 – H Culture Company culture can be defined as “a system of values and beliefs shared by people in an organisation – the company’s collective identity and meaning” (Fletcher and Brown, 2009, pg. 334). As stated on the official H website, the company believes its employees, teamwork, working at a face past and constantly improving (H, 2009). This suggests that H appears to have a relatively open, carefree and energetic company culture, where it strongly promotes open communication between managers and their employees (H, 2009).

In addition, H is a firm believer of non-discrimination where all qualified applicants are given equal opportunities regardless of any characteristics including, race, religion, sexual orientation, sex, age marital status or disability. The company culture of H should not cause any implications when entering the Australian market. However, it may cause implications when international marketing strategies does not coincide with the company’s culture, as strategies are designed to accommodate the company’s culture and not vice versa.

5. Economic Factor

The Australian economy has recently experienced a market downturn where economic factors such as consumer confidence and disposable income will have a direct and indirect impact on the market entry and success of H in the Australian market. ?Gross Domestic Production (GDP) The GDP for Australia has been relatively flat in 2009, where there is no significant growth, however, there is an anticipated growth of 0. 5% in 2010 and with the recession ceasing there should be gradual growth of 3. 25% in 2011 (ANZ, 2009).

Interest Rates

In recent times, the interest rate has continued to drop, where in 2009, the nominal interest rate had dropped by 3% (Refer to Figure 2. 0 in Appendix). As interest rates are low Australians are discouraged from depositing money in the banks as it does not generate interest. ?Household Income From figure XX and XX the equivalised disposable household income for Australians appears to have gradually increased. For instance in 1995-96 there were 11% of total income categorised as being low income, however, in 2007-08, this had decreased to 10. 1%. While there has been a significant increase of high income earners, from 37. % in 1994-95 and 40. 5% in 2007-08 (ABS, 2009). Overall, the Australian economy appears to be reasonably attractive as both GDP and equivalent disposable household income have increased, which suggests that consumers have more money and are more likely to spend and purchase consumer goods which include clothing and footwear. Therefore, H should take advantage of this consumer confidence and enter the Australian market rapidly as consumer currently have the ability to purchase more consumer goods that are not considered to be a necessity.

6. Competitors Analysis

Even though the clothing and footwear industry in Australia is viewed to be an attractive market to enter, there does appear to have intense competition. Referring to figure XX, there is no dominant market leader in the Australian market; however, there are a number of brands who have gained substantial brand share, such as Just Jeans (1. 9%) and Jays Jays (2%) respectively (REFERENCE). All brands operating in the clothing and footwear industry could be considered as H competitor, however, Just Jeans and Jay Jays are the two most similar brands compared to H.

Where they have also identified the demand for fashionable yet low priced products, therefore, all three companies have similar product offerings and also customer profiles. Hence, to successfully enter and establish H in the Australian market, it would be essential to have sound knowledge of competitors and develop core competencies such as designs that are exclusion and is able to differentiate H from other similar brands.

7.  Social Trends

Sizes Overall, both Australian men and women’s body weight has gradually increased in recent times. However, as the primary segment for H are young women aged between 18 to 24, only the body weight of women will be discussed. From previous surveys conducted there appears to be a steady increase of the average weight of women from 62. 6kg in 1989-90 to 67. 7kg in 2004-05 (ABS, 2009). From figure XX there also appears to be considerable increase in the Body Mass Index (BMI), where there are less women classified as being normal weight, while there are more women who are overweight and obese.

As a result of this increase in body weight, the dress size as also increased from size 12 to size 14. Hence, to accommodate to this increase in weight, most clothing brands have now introduced larger sizes for instance, Portmans now has size 16 as part of their standard dress size. Therefore, to ensure that H is able to compete with other competitors it would be essential for them to manufacture products that are the suitable size for Australian women.

8. Conclusion

In conclusion, this report has thoroughly analysed a variety of factors to identify the attributes and threats of the Australian market in relation to the launch of H. Taken as a whole Australia appears to be an attractive market which consists of a stable economy and high consumer confidence. Where H is able to use these attributes to help them better penetrate and expand in the Australian market. In contrast, many threats were also identified including cultural differences, changes in social trends and also intense competition.

It is absolutely essential for H to gain thorough understanding of the threats and furthermore the business and social environment of the Australian market. Main reason being, H will then be able to develop specific marketing strategies to address and overcome these issues to successfully enter and become a market leader of the women’s outerwear segment in the Australian clothing and footwear industry.

9. Recommendations

From previous analysis Australia and the city of Melbourne in particular appears to be a possible market for H to enter and expand into. Therefore, the following recommendations are written in correspondent to the threats and issues identified in the conclusion and throughout the report.

Market Entry Option

Direct Exporting It is suggested that H adopts a direct exporting method to enter the Australian market. Direct exporting can be identified as “… the firm itself contacts the buyers overseas and either sells direct to the end-user” (Fletcher and Brown, 2009, pg. 290). Mainly because this is the market entry option H are experienced in using and is also one of the most commonly used method. As it is relatively simple to operate and provides the company with more control over the operation of the business.

Adapting to Australian fashion culture

Style and Size For H to succeed and be able to obtain market share, the company must adapt to the Australian fashion culture and the physical body size of Australians. Therefore, H is recommended to use product development strategies where they manufactured products that suit the Australian market.

Suitable store location

Chadstone Shopping Centre Finding a suitable store location also plays an important role to the launch of H in Melbourne. Therefore, Chadstone Shopping Centre is suggested as a suitable store location for the first H store to be established. Main reason being, the shopping centre is well-known and has a solid customer base, which makes obtaining brand awareness easier.