fashion marketing week 3

Week 3

New Product Development &

Product Life Cycle

Target Marketrecap

Target audiences define who you are going to sell to.

Target markets can be defined by demographics,psychographics, geographic, benefit or buying behaviour

Related specifically to fashion, one theory groups potential

customers into four main categories

McFashion

International Superbrands

London Style (country dependent!)

Micro markets

McFashion

Term McFashion coined in 2003

High streets are full of the fashion equivalentof fast food – cheap, chic clothing available

all over the globe

Enables safe buy in into latest trends, focus on value for money

European brands such as GAP and Zara

UK supermarkets such as ASDA and Tesco

International Superbrands

Opposite end of market to McFashion

International Superbrands are led by the notion of couture

The label on what you wear is critical

International superbrands are the drivers Behind the aspirational elements of fashion

London Style

The London fashion scene is recognisedinternationally for its creativity and flourishing

market

The UK prides itself on designers such as John Galliano, Stella McCartney

and Alexander McQueen who took over fashion houses in

Paris

Micro Markets

Micro markets are the most directional in regardsto the future of clothing and fashion

Multi dimensional and multi style group

Related to consumer moods – customised clothing online. Think Nike

Once you know who you are going to sellto, there are a few ways to introduce a

new product

Product improvement or modification

Product imitation

Product innovation

Product diversification

Product Improvement

Used when a product has reached a stage where something has to be done to keep it viable

Do you get rid of it, or revitalise it?

Product Imitation

Wait for another to take the lead in a market, thenrelease an imitation product

(remember the how of ‘how do I compete?’

This strategy reduces your own risk

Imitator sometimes has a lower cost, so a priceadvantage

Think fake fashion!

Product Innovation

Do you introduce a new product to replacean existing product and satisfy the need in

a new way?

Think mini skirts, swim suits over the years

Innovation is a high risk strategy, but can pay off if successful

Product Diversification

Introduces new products or markets intomarketing strategies in pursuit of growth

High risk strategy

Three ways to diversify

Concentric: close synergy with existing products(ie dresses and shoes)

Horizontal: technologically unrelated, but sold toThe same customers

(ie dresses and perfumes)

Conglomerate: no relationship to current Product

(ie dresses and bread)

Product Life Cycle

Products go through stages which requiredifferent marketing strategies to maximise

sales and profits

Introduction

Growth

Maturity

Decline

Introduction

The introduction period is one whereacceptance of the product is in doubt

Usually involves high marketing expensesand little profit

Growth

Period of substantial profit improvement

Strategies in this phase:- Product improvement (product)- Promote to new market (promotion)- Use new distribution channels (place)- Price reductions to attain new customers (price)

Maturity

In a mature market there is intense rivalry

Companies battle for market share throughadvertising, new distribution channels, priceConcessions

Growth of sales slows, profits peak then Decline

Strategies can include:- Search for new markets- Product improvements or changes- New marketing mix

Decline

Decline is not necessarily a bad thing

Competitors can leave, resulting in reduced costs

Strategies can include:- Increase investment (to dominate)- Decrease investment selectively (concentrate on positive areas)- Divest (dispose of assets)

Apparel and other consumer products can be classified by the

length of their life cycles.

Basic products such as T-shirts and blue jeans are sold for years

with few style changes.

Businesses selling basic products can count on a long product life cycle with the same customers buying multiple

units of the same product at once or over time.

The life cycle curves of basic, fashion, and fad

products are pictured below.

Fashion product life cycles last a shorter time than basic product life cycles. By

definition, fashion is a style of the time.

A large number of people adopt a style at a particular time. When it is no longer

adopted by many, a fashion product life cycle ends.

Fashion products have a steep decline once they reach their highest sales.

The fad has the shortest life cycle. It is typically a style that

is adopted by a particular sub-culture or younger

demographic group for a short period of time.

The overall sales of basic products are the highest of the three types of

products, and their life cycles are generally the longest

Apparel products often have a fashion dimension, even if it is just colour. As fashion features increase in a product, the life

cycle will decrease.

Therefore, if you are designing a fashion product, you will want

to have multiple products in line for introduction as each

fashion product's cycle runs its course

Some firms build their lines to include basic, fashion, and fad products in order to maximize sales. For example, with a sweater line, a business may have four

styles that have classic styling and colours and are always in the line.

Four additional styles may be modified every two years to include silhouette,

length, and collar changes based on the current fashion. One or two short-cycle fashion or fad styles based on breaking trends may be introduced once or twice a year. Styles that a popular celebrity or sports hero is wearing are examples of

fashion and fad styles

Five types of consumers emerge at each of the life cycle

stages.

Different marketing strategies should be used to reach each of these consumer types.

Fashion innovators adopt a new product first. They are interested in innovative and unique

features. Marketing and promotion should emphasize the newness and distinctive features

of the product.

Fashion opinion leaders (celebrities, magazines, early adopters) are the

next most likely adopters of a fashion product. They copy the

fashion innovators and change the product into a popular style. The

product is produced by more companies and is sold at more retail

outlets.

At the peak of its popularity, a fashion product is adopted by the

masses. Marketing is through mass merchandisers and advertising to

broad audiences.

As its popularity fades, the fashion product is

often marked for clearance, to invite the

bargain hunters and consumers, the late

adopters and laggards, who are slow to

recognize and adopt a fashionable style.

Done!

• Prada – appears in Miami Vice, Mission Impossible 3

• Carhartt appears in Failure to Launch, the departed