fashion marketing week 3
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Lecture notes, Fashion Marketing week 3 Central Tafe NorthbridgeTRANSCRIPT
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