fat face case study report

Viktorija Kolosova/Q09854215/FFM606

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Student Name: Viktorija Kolosova

Student Number : Q09854215

Faculty: FCIS

Level of study: 6

Course title: Fashion Management with Marketing

Unit title: Contemporary Fashion Marketing Strategies

Assignment title: Case Study Report

Assignment tutor: Graeme CM Smith

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Contemporary fashion marketing strategies

Unit Code: FFM606 Assessment Type: Report Assessment Title: Case Study report Assessment Number: AE1 Unite Leader: Graeme CM Smith Student Name: Viktorija Kolosova Student Number: Q09854215 Level: 6

Fat face case study report


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Table of Contents Contemporary fashion marketing strategies ............................................... 3

Introduction .................................................................................... 5

Fat face background ........................................................................... 6

Fat Face Current Market position ........................................................... 6

Fat face mission statement .................................................................. 7

Fat face vision statement .................................................................... 7

Fat face values ................................................................................. 7

Macro environment Assessment ............................................................. 8

Analysis and evaluation of Fat face and its competitors ............................... 11

Fat face porter’s value chain .............................................................. 15

Marketing objective ......................................................................... 17

SMART OBJECTIVES .......................................................................... 17

Ansoff growth matrix ........................................................................ 18

Marketing programmes ...................................................................... 20

Porter’s generic strategies ................................................................. 21

Conclusion and final justification ......................................................... 22

References .................................................................................... 25

Appendices .................................................................................... 29


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Introduction

This report will produce a strategic plan that will position Fat Face distinctively in the current UK fashion retail environment. It will explore the company’s current environment and measure competitors’ position. The strategic marketing planner will identify a five year prospect strategy by outlining target goals and objectives. Therefore, it will determine the main marketing programmes by means of achieving those set goals and objectives.

(Facebook 2013)


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Fat face background

Fat Face is a British fashion brand established by two friends Jules Leaver and Tim Slade who were skiers. The idea came to life when they begun to run out of money to finance their skiing in the French Alps. The name ‘Fat Face’ was born by them being inspired of their favourite black mountain La Face. They started their business in 1988 by producing just a few t-shirts and sweatshirts. The first Fat Face store was open in Fulham in 1992. (Fatface 2013) Now, the brand has grown and became one of the most recognisable lifestyle clothing and accessories retailer in the UK. It designs womenswear, menswear, childrenswear, footwear and accessories. Its clothing lines are designed in outdoor yet colourful styles which are cut generously for a comfortable fit, including trousers, jeans, knitwear, dresses, tops, vests, jackets, jumpers and sleepwear. Fat Face has their own accessories lines such as footwear, scarves, hats, gloves, bags, wallets, belts, jewellery and watches. Also in their shops can be found various choices for gifts such as laptop cases, tissues, notebooks, bottle openers and even air fresheners. (Fatface 2013) Nowadays, Fat Face has over two hundred stores in the UK and Ireland with established e-commerce and wholesale operations. Through the multichannel retail customers of Fat Face are always within easy reach of the brand. (Fatface 2013) The Sunday Times Fast Track stated that the Fat Face Company is estimated to turnover of £25 million in 2013 and is recognised as one of the fastest growing companies in Britain. (Fasttrack 2013)

Fat Face Current Market position

Fat Face is targeting the 35 to 55 year old male and female demographic. It has positioned itself as the middle market orientated fashion retailer since opening their first store in 1993. Fat Face hired Sir Stuart Rose, who previously worked as a former boss for M&S, to be the company’s chairman. (Chapman 2013) By putting the correct people in place Fat Face will strengthen, expand and develop its operations.


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Fat face mission statement

Fat Face is a reliable British company who is committed to producing well-designed quality clothing and accessories for people who embrace life outside the nine to five. They deliver products and services of exceptional quality and reliability consistent with their brand and their image. (Clarksvillage 2013) They always stay true to their heritage and continue to pursue new growth opportunities. (Fatface 2013) Their philosophy is ‘Life is Out There’. (Clarksvillage 2013)

Fat face vision statement

Since they began in 1988, their vision has been to design clothing that is being loved by all their customers for life outside the work. Fat Face aims to inspire customers and employees, to embrace life and search for new adventures and experiences. (Fatface 2013)

Fat face values

Fat Face is dedicated to delight and satisfy their customers by providing a great shopping experience whether it is in-store or online. They believe by inspiring customers with their products it will lead them to go outdoors and try new things. They also value the significance of employees who really share these values by promoting teamwork, contribution and empowerment at all levels of the company. (Fatface 2013)


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Macro environment Assessment

PESTLE ANALYSIS

Table 2.1 PESTLE Analysis FOR FAT FACE

Political

Tax policy

Employability regulations

Wage regulations

Trading laws

Law of supply and demand

Trade tariffs

Labour exploitation

Economic

Recession

Disposable income

Unemployment

Growing inflation

Increase in interest rates

Socio-cultural

Demographics

Fashion consciousness

Consumer buying patterns

Lifestyle

Retail spending

Celebrity endorsements

Technological

Marketing tools

Production

Availability of resources

Logistics EPOS systems

Legal

Health and Safety regulations

Copyrights

Consumer protection

Consumer Credit Act

Distance Selling regulations

The Sale of Goods Act

Environmental

Waste and Recycling

Personal Ethics

Climate

Animal welfare

Corporate Social Responsibility

(Brassington and Pettit 2006, p.49) Political There are existing laws on how the employees have to be treated. If Fat Face follows all the set regulations then the company will have a respectful reputation which can lead to continued success. (Legislation 2013) Wage regulations can have a positive impact on Fat Face as with higher disposable income customers who will come more often to the store or visit the website to buy products. (Gov 2013) Consumer protection is very important nowadays, if Fat Face treats its customers fairly then they do not have to change their business practices to follow agreements with the regulations. (Gov 2013)


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Fat Face by implementing precisely the law of supply and demand will continue to be profitable hence building loyal relationships with its customers. For instance, an increased demand on a particular product Fat Face has to react quickly and provide customers with it. If it is not achieved the company may lose money unless they do not raise prices. (Ehrbar 2008) Economic Recession affects the company’s prosperity. During recession time the government might increase ‘value added tax’ which reduces the amount of disposable income and Fat Face profit might decrease significantly. (Gov 2013) The UK disposable income has increased by 0.4% (Businessweek 2013), while the UK inflation rate is 2.1% (Tradingeconomics 2013) according to this data, prices on goods and services are still growing, so it has a negative impact on Fat Face prosperity as clothing is not people’s priority and they are not able to spend more on clothing. Socio-cultural Fat Face can evaluate and research what demographic situation is in certain areas and possibly open new stores or attract new potential target customer with the new range of clothing and accessories. (Suttle 2013) Fashion consciousness is a social influence on lifestyle. (Oxfordjournals 2013) Nowadays, people are trying to live healthier lives, so Fat Face has a potential to be successful in the very competitive market by constant representation of an outdoor brand. The celebrity endorsements are an excellent way to attract customers (Wisegeek 2013) and it has a very positive impact on the brand as it is always catching the attention, especially if the chosen celebrity is on the wave of attractiveness. If Fat Face will consider using celebrities, for the purpose of promoting their product, there is a potential to succeed and increase brand awareness. Technological Marketing tools take part in communication with the loyal and potential customers. Social media is very valuable and it is the most common way to broadcast the information. (Brittanyh 2013) Fat Face is using many tools such as Facebook pages, where they show all the latest collections in a very eye-catching layout. Everyone can follow them on Twitter and on Pinterest websites. It is a good approach of building the brand awareness and it does not cost a lot of money which is efficient for the business. Logistics is one of the most important components of a business. By dispatching products the same day they were purchased through the online channel, Fat Face can build an image of a brand with great customer service. (Fatface 2013) It is beneficial for Fat Face to buy Electronic Point of Sale system (Epos 2013) which will help them to control their stock in more convenient way. Moreover, Fat Face is selling online so it will improve the business’ productivity and efficiency.


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Legal By following the Sale of Goods Act (Securetrading 2012), Fat Face has an opportunity and chance to avoid customers’ disappointment with the products, for instance the product was bad quality. The brand can engage customers by delivering high-quality clothing; however, if a customer is disappointed with a product Fat Face should meet the procedures of returning or exchanging. If Fat Face does meet health and safety regulations at all times, it will not damage its status and will not pay a fine. They should provide their employees all the required conditions to work. (Hse 2013) Environmental If Fat Face will follow the recycling regulations they will not harm the environment. This is an opportunity for the brand as they could build a picture of an eco-friendly company; this will show how much they care about the planet which can lead to attracting and driving more customers into the store. (Gov 2013) Climate is an opportunity for Fat Face, for instance, unexpected heat can raise sales figures on summer products such as bikinis and hats. However, it can be a threat if a weather disaster such as a hurricane which could possibly decrease sales and slow down the supply chain. (Paddison 2013)


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Analysis and evaluation of Fat face and its

competitors

Primary Research The questionnaire was conducted to complete online through Surveymonkey. There were 75 respondents altogether. (See appendix 1)

Key Findings: Respondents: 75

Female: 46

Male: 29

Shop at Fat Face:

76% of respondents shop at Fat Face

24% do not shop at Fat Face

76% of respondents usually shop for:

outerwear

jeans

accessories

76% of respondents on how they are satisfied with the customer service at Fat Face:

60% quite satisfied

20% neither satisfied nor dissatisfied

14% somewhat satisfied

6% extremely satisfied

Competitors of Fat Face:

White Staff

Animal

Hollister

Gap

M&S

USC

Timberland

Superdry

Suggestions to Fat Face how they could improve their brand image:

Design a new clothing line

Increase advertising

Follow the latest trends

Less expensive clothing



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Conclusion According to the primary research, Fat Face needs to work in the advertisement segment and the way they want to communicate with potential customers. One of the main Fat Face parts of improvements is to introduce a new clothing line which would represent the latest trends. This would help it to bring in new customers. It needs to increase its brand awareness by advertising clothing. The people who know about the brand and are using it are very loyal to it. They have trust in the quality of the product and they want to be associated with it. However, Fat Face should focus more on creating new designs and raise awareness which therefore will bring in new potential consumers who could then become loyal customers, hence increasing profitability.

Swot analysis Table 3.1 FAT FACE SWOT ANALYSIS

Strengths

Multichannel sales

High-quality clothing

Outdoor clothing

Brand equity

Range of sizes and shapes

Increase in sales by 29% (July 2013) (Smith 2013)

Weaknesses

Age limit

Competitors

Economic Recession

Lack of styles

Opportunities

Further expansion in the UK

Creation of a new clothing range


Raise of minimum wage

EPOS system

Threats

Retailers with the similar products’ range

Increased taxation rates

Unemployment of current and potential Fat Face customers

(Brassington and Pettit 2006, p.1007) According to table 3.1 Fat Face strengths and opportunities dominate over the weaknesses and threats. Nevertheless, Fat Face wants to avoid any possible threats and weaknesses with building the outstanding brand which is recognisable amongst current and potential customers. To achieve this, Fat Face will design unique clothing range, and there is a possibility they will create more feminine style clothing lines, in purpose of reaching new customer base. With further expansion Fat Face has an opportunity to reach new customer base and strengthen relationships with existing customers. Moreover, if Fat Face will start using celebrity endorsements it can make people being more aware of the brand and its values. Therefore, Fat Face can achieve a higher percentage of sales figures in the future.


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Competitors of Fat Face Porter’s Five Forces According to Porter’s Five Forces, it is important to be aware of competitors and their products as it helps to analyse whether new products have the potential to be profitable and what can be undertaken to compete effectively. (Rilley 2012) The competitors of Fat Face are brands with similar targeted customer market and in the offered product range. Fat Face competitors are listed below:

White Staff

Animal

Hollister

USC

GAP

M&S

Timberland

Superdry

Some of these competitors have a high amount of finance and marketing resources available which give them an opportunity to compete effectively, for instance, if there is a recession and demand is not as high they can invest more money in advertising. During a recession these competitors can invest more in promotion, therefore weaken other brands. Apart from these established companies, Fat Face competitors are also internet-based retailers such as ASOS and Mywardrobe who

Figure 3.1 Porter’s Five Forces

(Porter 2008)


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sell clothing, including outdoor range and accessories. This could affect Fat Face’s sales, prices and profitability in the future. Bargaining power of consumers Fat Face is a fashion brand who offers outdoor clothing for men and women aged 35 to 55. Its customer’s profile is an educated person, for instance doctor, lecturer or assistant manager, who belong to B and C1 social groups with high amount of disposable income; high buyer power. There are many other retailers that provide relatively similar product lines to Fat Face; therefore, customers may require more fashionable or innovative product line as compared to the current offerings. Moreover, even though the current global economic downturn, the clothing industry continues to grow with great product differentiation that means rivalry within the industry is moderate. Bargaining power of Suppliers Supplier power in the worldwide industry has decreased through competition from manufacturers in low-wage regions. (Wherefromwhere 2013) Fat Face makes their garments in Bangladesh and in India. The company has no factories of its own, so supplier power is high and they can raise prices, lower product quality and reduce product availability. However, these suppliers have definite commitments to pursue, stated in the agreement between them and Fat Face. Threat of New Entrants is high as the fashion industry is a fast paced environment with low entry barriers. Fat Face can lose their market share if there will be an entrant with the similar product at alike or lower pricing points. However, they can keep their customers to stay loyal by reacting on customers’ changing trends and preferences. Threat of Substitutes Nowadays, clothing signifies the social class of a customer and a way of representing his or her identity. A threat of close substitutes is high as there are many substitutes circulating in the market; possible substitutes can be charity shops and pop-up stores who offer similar products at a lower price. However, Fat Face customers belong to the ‘Financially comfortable families’ class (Acorn 2013) so they want to wear high-quality clothing, therefore demand for Fat Face will continue to grow.


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Fat face porter’s value chain

The Porter’s Value Chain analysis is for gaining competitive advantages that will add more value to the product and services, therefore the company will gain marginal value for that product or service. (Saha 2011) Analyzed below are a few elements of Porter’s Value Chain concerning Fat Face, in the writer’s opinion Fat Face competitive advantages are.

Refer to figure 3.2 one of the most important components of inbound logistics is a supplier. A supplier is the main source of getting a product in place and on time. Fat Face supplier base is vital to meeting the company’s compulsory quality and ethical standards, and ensuring that the product is available on time. (Fatface 2012) Through a conjunction of broadening the supplier base and strengthening relationships with existing suppliers, Fat Face can minimise any over-reliance on a particular supplier and develop the competitiveness of the product. The company has production in Bangladesh and India. Fat Face focuses seriously on the control of its operations and the quality of the final output of a product. They look for the highest quality at every stage of production, for the purpose to ensure that a customer will not receive a defective product, which therefore leads to dissatisfactory. Fat Face outbound logistics such as distribution is through three main channels: stores in the UK and Ireland, e-commerce and wholesale. (Fatface 2013) multichannel retailing gives a great chance of growth and opportunity to reach a wider audience hence increase sales margins.

Figure 3.2 Porter’s Value Chain

(Kbrconsulting 2003)


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Fat Face is a recognised brand amongst the public. As their marketing tools they use social media such as Facebook and Twitter. These methods are considered to be very helpful for brand development. Analysing Fat Face Facebook page, their brand image is of high-quality, comfortable and clothing for everyone. The company’s communication after sales is very practical. Customers can return items within 28 days after the purchase was made; returns are free of charge. Now, they have introduced ‘Collect +’ which allows customers to drop their unwanted items in their local stores. (Fatface 2013) According to the primary research done, customers are satisfied with the customer service at Fat Face. Fat Face opened new stores during the year of 2012 which has created over one hundred new jobs. (Fatface 2012) According to the Porter’s Supply Chain, Fat Face’s Secondary Activity was Human Resources who recruited and trained staff members which provide an opportunity to get promoted and make a career within the company. According to their financial statement, (Fatface 2012) Fat Face progressed in their ability of resolving to restrict price promotion to limited sale periods, re-establishing the brand integrity and pricing policies. It has led to a sales increase of 7% comparing to the previous financial year.


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Marketing objective

To enlarge the overall market by increasing product innovation.

Fat Face can implement marketing objectives such as establishing an opening market position by increasing its product innovation. Fat Face is a recognisable company within the UK market. By increasing product innovation, for example, create more fashionable clothing lines, it could attract a different range of customers and increase the company’s sales profit as well as popularity amongst customers.

SMART OBJECTIVES

Fat Face is expecting to increase its product innovation and therefore

improve their position within the UK market by 30% by the 31st December

2015.

Fat Face is a British brand, which foresee economic conditions and strive to remain challenging. According to their given financial information (Fatface 2013), they are increasing their market share every year by continuing to innovate and refine their collections across all categories. One of the main areas that they strive to improve is women’s wear, so by introducing new, more fashionable lines for women Fat Face has an opportunity to grow. Fat Face strongly believes that with further product innovation and development they will achieve the set objective by the 31st of December 2015. Fat Face is going to domesticate the market by opening 15 new stores in the

UK by the 31st December 2018.

Fat Face goal is challenging in a macro economic condition by creating different but attractive and fashionable collections for the UK market. To achieve the set objective Fat Face is going to open 15 new stores which will give them an opportunity to enhance the brand awareness within the UK market and boost sales margin which then leads to a chance for further expansion. Based on the research conducted, Fat Face strongly believes, that the objective is achievable and realistic which is expected to be achieved by the 31st December 2018.


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Ansoff growth matrix

Ansoff Growth Matrix was developed by Igor Ansoff in 1957. He said that a business has the prospect to grow by using one of four strategies. These strategies include making the most of existing markets and products, developing new products or emerging new target markets. (Learnmarketing 2013)

Market Penetration

Increasing its market share within the fashion industry.

Market Development

Expanding internationally

Gaining new customers by opening new stores in different areas

New distribution channels.

Product Development

New product development such as cosmetics, perfume and jewellery

New styles of clothing.

Diversification

Create entirely different clothing ranges under the different a name, for

instance ‘Fat Face Chic’ to achieve greater brand leverage.

(Marketing-equity 2011)

Figure 4.1 Fat Face Ansoff Growth Matrix


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Fat Face aim is to continue to pursue new growth opportunities. (Fatface 2013) According to Ansoff matrix, the suggested future for Fat Faces strategic direction for growth is new product development which is a medium risk strategy because the market is known and the product is new. Referring to the aim, a new product development marketing strategy is a perfect choice to progress their business within the UK market. The clothing market is growing rapidly and therefore it is very important to stay competitive. Fat Face has the potential to increase their market share by introducing a new and innovative product to its existing market. One of the ways it can be achieved is the designing of new, trendier clothing ranges which are possibly less expensive (according to the primary research); it will allow approaching customers from different segments as there is a possibility that the potential customers will be intrigued by the new range. As a result, it can help the company strengthen their relationships with loyal customers, further interaction with potential consumers and improve the position within the market. Fat Face also can produce perfume and cosmetic lines for women as well as for men, or extend the accessories line. Moreover, Fat Face in the future can expand internationally by opening new stores, for example, the United States. However, before entering the new market Fat Face has to explore it, for instance, it can be America’s market where the laws, cultural and personal preferences are different from the UK market. It cannot be forgotten that the sizes and shapes of people are different in different geographical locations. Therefore, when the company designs the lines they have to keep this in mind to be able to succeed in their aim for growth.


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Marketing programmes

A series of 6 planned actions Advertising on social media networks

Promotion

Selling in new locations


Loyalty programs

Creating new less expensive lines

Advertising on social media is crucial nowadays. For advertising Fat Face can use Facebook adverts which are paid-for Sponsored Stories like ‘Pages You May Like’ to increase numbers of visitors their actual page hence raise awareness of the brand presence. Also Fat Face can create websites with their offered products’ ranges in that country’s language which they want to enter, for example, if they are going to emerge in the Russian market, they should present their offers in the Russian language. In terms of promotion, an interactive catwalk show could be organised and posted on the website, including social media to help visualise garments and how they look on a body. Moreover, advertising on magazines or billboards help to spread the information and create a buzz as it is one of the strongest marketing methods to make people talk and visit the store. Selling products in more locations will raise consumer awareness of Fat Face offerings, especially with a wide, more innovative range in offer. Celebrity endorsements are a good way to promote and present brand image. It always fascinates people and gives them a reason to talk about it with others which are major factors of a company’s enhancement; it can be either criticism or positive feedback. Fat Face with a use of celebrities who are popular around the world can help build an iconic and desired brand. Loyalty programs will give a customer motivation to come back into store to buy more while the company has a chance to enhance their image in the customer’s eyes. Under the program, customer collects points based on purchase activity and when there are a certain amount of points then it can be exchanged for a real product in the store. In addition to a new product development, Fat Face can set lower price points which therefore can give the company the ability to catch the attention of a wide variety of people while increasing sales and brand knowledge. With the wide distribution of clothing, Fat Face can stay competitive and successful company. Fat Face should evolve at all times as the fashion industry is a very competitive environment.


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Porter’s generic strategies

Porter’s Generic Strategies was developed by Michael Porter in 1980. These strategies were designed for a use of a company to gain competitive advantages. These three are: cost leadership, differentiation and focus. (Economictimes 2013)

(Mindtools 2013) Fat Face at the moment is between ‘differentiation’ and ‘focus’. They are concentrating on a limited part of the market, the outdoor market segment. The loyal customers believe that they are creating clothing that is perceived to be unique. However, the suggested strategy for Fat Face is moving onto ‘differentiation’ by continuing to offer outdoor ranges, besides of entirely new and innovative clothing lines, which perhaps is designed to attract a younger customer base. By adding the value of the uniqueness of this new range may allow them to dominate over their rivals. Therefore, Fat Face can accomplish that future and its customers will perceive their product to be different and better than their competitors. Moreover, Fat Face needs to invest in advertising, according to the primary research, by means of promoting the brand. By being eye-catching and creative advertising, which demonstrates the image of product distinctiveness, they will attract customers to visit a store and let them compete effectively within the market.

Figure 4.1 Porter’s Generic Strategies


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Conclusion and final justification

Fat Face aims to inspire customers and employees, to embrace life and search for new adventures and experiences. Fat Face objective is to enlarge the overall market by increasing product innovation. Below is shown a ‘Balanced Scorecard’ strategy tool to measure Fat Faces performance that focuses attention on the four segments. (Investopedia 2013)

(Smartdraw 2013) Learning and Growth According to figure 5.1 to achieve the vision of inspiring employees Fat Face can improve their culture by staff training, along with more open participation and engagement. It is important to offer consistent self-improvement for employees as they are the representatives of a company. Empowering a workforce and their knowledge about the products and company is the key to success in the industry. To measure the employees’ satisfaction, Fat Face can conduct staff surveys to get feedback on how they are satisfied with current training techniques and if there are any suggestions for improvements.

Figure 5.1 Balanced Scorecard Strategy


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Business Processes Fat Face mission is to produce high-quality clothing and accessories. To achieve the mission Fat Face must excel at business processes such as a new product development to satisfy customers’ requirements and maintain their needs; it will make them competitive and a profitable company. The success of a new product can be measured through the store traffic and the amount of social media followers. Customer Fat Face objectives are to increase value for money, increase customers’ satisfaction and decrease complaints. Increasing customers’ satisfaction can be achieved by creating innovative collections that will satisfy existing and emerging customer needs. Increased innovation and operational efficiency will allow Fat Face to create better value for money products. In terms of decreasing the number of complaints, Fat Face has to offer exceptional customer service and continue to produce high-quality clothing to impress their customers. How customers think about the brand can be measured by surveying customers through e-mails and in-store, and through mystery shopping for the purpose to collect responses on if Fat Face meets the customers’ needs and how customers are fulfilled with the new product. Financial Fat Face objective is to increase profitability hence a higher customer base. To enlarge the company’s effectiveness Fat Face can increase market share by opening new stores across the UK to strengthen their position within the market. The new stores and innovative product will enhance customers’ curiosity in brand which leads to a growing productivity. Success can be measured by growth in sales revenue or calculating a company’s financial performance by EBITDA calculation (Earnings before Interest, Taxes, Depreciation and Amortization). (Investopedia 2013) Key Performance Indicators or KPI’s One of Fat Face SMART objectives is to increase its product innovation and therefore improve their position within the UK market by 30% by the 31st December 2015. Fat Face forecasts economic conditions and strives to remain challenging within the fashion industry. According to the set objective, Fat Face is competing effectively and is going to design an entirely different collection to attract a diverse customer base. Therefore it will give the company an opportunity to grow and increase brand awareness, which is brought by product innovation. The main performance indicator of growth will be the measure of sales growth year-by-year; therefore the sales figures will indicate how successful the new collection launch is. The key performance indicator to measure the customer satisfaction will be through the call centre, in-store and e-mail surveying which will indicate whether Fat Face has achieved brand awareness or satisfactory. Customer satisfaction for the business is vital as they are likely to recommend the place to shop at.


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The second SMART objective of Fat Face is to increase the domestic market by opening 15 new stores in the UK by the 31st December 2018. By continuing to open new stores across the UK, it will increase their market share hence increase the sales margin. Selling in new locations will help Fat Face to strengthen their market position and build stronger relationships with consumers. Moreover, with the innovative product development they will enhance the interest of people who have never shopped at Fat Face before. The key performance indicator is the measure of growing productivity or growth in sales after the shops are in operation. This will help to assess if the set objective was achieved. To conclude, Fat Face is a business which strives to achieve growth and profitability. To combine the two SMART objectives, Fat Face has the potential to succeed and compete efficiently in the fashion industry. Fat Face by launching a new product line and further expansion within the UK market can improve their sales figures. In support for achieving the objectives, it can be accompanied with advertising such as billboards and television adverts, as well as celebrity endorsements to attract attention and be noticed.


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References

Books: BAKER, M., S. HART, 2007. Product strategy and management. 2nd ed. Harlow: Pearson Education Limited BRASSINGTON, F., S. PETTIT, 2006. Principles of marketing. 4th ed. Harlow: Pearson Education Limited DRUMMOND, G., J. ENSOR and R. ASHFORD, 2008. Strategic Marketing Planning and Control. 3rd ed. Oxford: Elsevier Ltd HOOLEY, G., N. PIERCY and B. NICOULAUD, 2012. Marketing Strategy and Competitive positioning. 5th ed. Harlow: Pearson Education Limited

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https://www.gov.uk/vat-rates

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PADDISON, L., 2013. Climate change: are companies prepared for the impact? [online] [viewed 20 December 2013]. Available from: http://www.theguardian.com/sustainable-business/climate-change-companies-supply-chain-impact RILEY, J., 2012. Overview of the Five Forces Model [online] [viewed 22 December 2013]. Available from: http://www.tutor2u.net/business/strategy/porter_five_forces.htm RYAN, J., 2013. UK Disposable Income Increases as Consumers Drive Recovery [online] [viewed 22 December 2013]. Available from: http://www.businessweek.com/news/2013-12-20/u-dot-k-dot-disposable-income-increases-as-consumers-drive-recovery-1 SAHA, A., 2011. Mapping of Porter’s value chain activities into business functional units [online] [viewed 23 December 2013]. Available from: http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units SECURETRADING, 2013. Sale of Goods Act 1979 [online] [viewed 17 December 2013]. Available from: http://www.securetrading.com/blog/post/85 SMITH, K., 2013. UK: Fat Face full-year profit increases 29% [online] [viewed 26 December 2013]. Available from: http://www.just-style.com/news/fat-face-full-year-profit-increases-29_id118509.aspx TELEGRAPH, 2013. Recovery Far Off for Families as disposable income sees biggest drop for 25 years [online] [viewed 22 December 2013]. Available from: http://www.telegraph.co.uk/news/politics/spending-review/10146720/Recovery-far-off-for-families-as-disposable-income-sees-biggest-drop-for-25-years.html TRADINGECONOMICS, 2013. United Kingdom Inflation Rate [online] [viewed 3 January 2014]. Available from: http://www.tradingeconomics.com/united-kingdom/inflation-cpi WEARFROMWHERE, 2013. Fat Face [online] [viewed 18 December 2013]. Available from: http://wearfromwhere.wordpress.com/responses/fat-face-2/ WHICH, 2013. Consumer Credit Act [online] [viewed 17 December 2013]. Available from: http://www.which.co.uk/consumer-rights/regulation/consumer-credit-act/?gclid=COKm0f7CvLsCFYUSwwodri8A4g WHICH, 2013. Distance Selling Regulations [online] [viewed 16 December 2013]. Available from: http://www.which.co.uk/consumer-rights/regulation/distance-selling-regulations/?gclid=CNDl7sTDvLsCFQcewwodJkoArQ WISEGEEK, 2013. What is the effect of celebrity endorsements in advertising? [online] [viewed 20 December 2013]. Available from: http://www.wisegeek.org/what-is-the-effect-of-celebrity-endorsements-in-advertising.htm

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FACEBOOK, 2013. Fat Face cover photos [digital image] [viewed 18 December 2013]. Available from: https://www.facebook.com/photo.php?fbid=10151856891704756&set=a.10150677501379756.413439.11095629755&type=1&theater KBRCONSULTING, 2003. Value Chain [digital image] [viewed 22 December 2013]. Available from: http://www.kbrconsulting.com/methods/value_chain.html MARKETING-EQUITY, 2011. Ansoff Matrix [digital image] [viewed 18 December 2013]. Available from: http://www.marketing-equity.com/2011/09/few-examples-of-ansoff-matrix.html MINDTOOLS, 2013. Porter’s Generic Strategies [digital image] [viewed 30 December 2013]. Available from: http://www.mindtools.com/pages/article/newSTR_82.htm PORTER, M. E., 2008. Porter’s Five Forces [digital image] [viewed 3 January 2014]. Available from: http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1 SMARTDRAW, 2013. Balanced scorecard examples [digital image] [viewed 2 January 2014]. Available from: http://www.smartdraw.com/specials/balanced-scorecard-examples.htm THECONSUMERWORLD, 2013. Fat Face logo [digital image] [viewed 18 December 2013]. Available from: http://theconsumerworld.files.wordpress.com/2011/10/fatface-face-and-text-banner1.jpg

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http://theconsumerworld.files.wordpress.com/2011/10/fatface-face-and-text-banner1.jpg


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fat face case study report

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