Introduction As the market for material goods begin to diminish due to shifting interests from millennials it is more important than ever to establish a strong non-price competitive culture. One company who has been widely successful in this aspect of corporate culture is Lululemon Athletica (Lululemon). Lululemon has seen strong growth in recent years despite growing competition. This is likely due to their warranties, customer service and store layout which encourage people to buy from them. In this report many topics will be covered regarding Lululemon including non-price competitive attributes, the trends of the industry and finally the conclusion.
However, the company still has to compete in the industry. The threat of substitute products, despite their very specific styles and brands, is very high for Lululemon. This is due to the buyer’s ability to easily wear competitors clothing items. Columbia has a very low/high threat of substitute products. Columbia develops their own technologies posing a low threat.
ALDI supermarkets, a well-known retailer in business, focused on retaining and gaining customer’s loyalty on those who were already familiar with the ALDI brand. ALDI’s main objective is getting its message across which is offering the best quality products at the lowest price possible. One of ALDI’s marketing strategies is the ‘Like brands’ by which ALDI created high quality products similar to those products of a well-known brand and competitors, but with a lower price. ALDI created blind tastes of these ‘like brands’ where people can taste ALDI’s brands and the national brand to see if they can make a
Marketing has become one of the most important factors for a company to be able to implement. It could simply make or break the companies’ success. One company that uses marketing in a variety of ways is Vera Bradley. They create, communicate, and deliver value in a very well represented way. Vera Bradley’s mission states is, “To design, manufacture and internationally market a distinctive line of superior quality handbags, travel items, stationery, eyewear and accessories that convey the Vera Bradley image and unique lifestyle.
a. L’Oreal Paris symbolizes a luxurious and aspirational beauty conscious customer. The brand ambassadors for the same have been people renowned for their beauty conscious self. The noun ‘Paris’ in the name brings in the fact that the product has an apparent elegance that the ‘fashion capital’ of the world possesses. The value for this line of products would cater to a customer who seeks an apparent elegance in their commodity of interest. For the niche customer of a L’Oreal Paris product, price would come secondary to the quality and status symbol it would attribute.
Zara is vertically integrated and takes care of designing, manufacturing and distributing its products. This gives it an immense hold on the market as most of the operational inefficiencies are eliminated by the company’s on employees who identify with the larger goal and value proposition of the brand (The New York Times, 2012). Zara works along with the consumers to understand them more closely rather than imposing its own predictions on them. Zara creates an environment of artificial scarcity in its stores for every design it manufactures so that consumers get a feel of exclusivity rather than stock pile up (Johnson, 2012). This gives them a sense of pride to buy a limited edition of products which they find at Zara stores only.
To meet the requirements of the company H&M has more options by buying and merging with the suppliers. • BARGAINING POWER OF BUYERS(HIGH) The fashion industry is growing vast day by day thus there are many alternatives for the buyers is also increasing day by day thus resulting to no customer loyalty to the brand. As H&M ‘s main source of revenue is its fashion clothes they have to monitor their customer needs. • THREAT OF SUBSTITUTES(LOW) Every company in
Fashion leaders purchase the product which is more stylish and can satisfy their ego. The brand promotion has unique impact on brand image. Well designed and executed promotion can be a very effective way to become h customer loyal and to differentiate a
The organization used its brand identity along with the new technology they developed to their strength in terms of developing as well as marketing the product which leads to the incredible amount of sales of the Chanel no 5 perfume. The adequate marketing mix is essential and a must for any product to reach the peak of its product life
Competitive Advantage: Mr Price has a wide range of competitors such as H&M, Woolworths and Pick ‘n Pay. A competitive advantage describes how the business has benefits or strengths over its competitors in the market. By having this, the competitors don’t seem as a threat to the company. It’s used