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Competitor analysis and Marketing mix
Transcript of Competitor analysis and Marketing mix
Topshop background and key facts
Background and key facts
Competitors Marketing Mix
Background and key facts
Competitor Marketing Mix
• Topshop is a retailer of women’s fashion and clothing, with the extra store Topman that sells cloths for men.
• With 300 stores in Britain and 100 international outlets (all franchises) in Asia, Europe and Latin America.
• The chain made around $200M profit (before tax) in 2008 on revenues of $1.14 billion.
• The United States is becoming a target market based on its attractive population size, affluence, and increasing interest in European high fashion.
• In 2007, Topshop launched the “Kate Moss Topshop” collection in 19 Barneys stores to better understand the US market.
• In 2009, Topshop launched its first North American retail location in New York (Soho).
• Today, Topshop has two stores in US (NYC & Chicago), with the objective to open 13 additional stores.
• First year gross sales forecast for their NYC store: $30M to $40M.
• Topshop offers large varieties of products and services in order to accommodate the very diverse audience they
• Prices vary from line to line to accommodate all aspects of the spectrum:
- “Mainline”, one of their most popular lines, is geared toward affordability offering classic styles at reasonable price.
- Topshops “Premium” line is focused on shoppers of quality products who are looking for apparel made with superior materials,
intricate detail and sturdy craftsmanship, but are on a higher price point scale.
Target customers are women aged btw 18 - 35 years.
Income range from $10,000 to $50,000 per year.
Target audience is young fashion-conscious people on a budget.
• The Company Mgt decided to stop competing just on price in the 90’s.
• The decision was made to create a fashion authority.
• Now the attributes associated with Topshop fit adequately with the “affordable luxury” category as well as “competitive price".
Topshop to go
According to VALS II (a), there are 8 segments: innovators, thinkers, achievers, experiencers, believers, strivers, makers and survivors.
Topshop targets two of these segments: achievers & experiencers (b).
Achievers have goal oriented lifestyles and a commitment to career and family.
Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers.
Experiences are motivated by self expression. They are young, enthusiastic, and impulsive consumers.
Their purchases reflect the emphasis they place on looking good and having "cool" stuff.
High quality and competitive price.
Innovation and creativity.
International brand and huge media support.
Line mostly limited to women.
Overwhelming range of line for
• Mobile devices and Internet mobile usage are growing at a rapid pace.
• Target group is open to new brands and fashion according to studies.
Strong established competition.
• New competition coming from Asia
• Economic downturn.