Assignment 2 : Ben Sherman
.0 Introduction
.1 Terms of Reference
This report has been written with the purpose of providing a clear market research for Ben Sherman which would take consideration of launching standalone womenswear outlets in the UK. Insights will be shown the business environment - the fashion retail market, marketplace and competitors analysis and STP. On the other hand, strategic direction and recommendation are provided by using theoretical models.
.2 Background information of the brand
Ben Sherman has been created a great British icon over the world. and the brand communicates with consumers through music
Arthur Bernard Sugarman was back to Brighton from America in 1963 and established the company named as Ben Sherman.
The brand became famous for being worn by well-known musicians. One of the most successful products is the famous Oxford button-down shirt, which became very fashionable for skinheads, mods, and suedeheads. Clothing designs sometimes feature the roundel and colours of the British Royal Air Force, and more recent shirts are often identified with unusual and complex designs, and the so-called Carnaby-style of fitted shirts.
Ben Sherman is now the fourth largest men's casual wear brand in the UK, with its main competitors, such as Ted Baker, French Connection and Timberland. (appendix 1)
2.0 Methodology
2.1 Secondary Research
Firstly, I used search engines such as Yahoo, Google and Wikipedia for general research, which has given me a good understanding of the brand and who are its competitors. Then, I researched the womenswear marketing and retail marketing from Mintel and the Ben Sherman's official website.
2.2 Primary Research
Primary research was conducted by questionnaires(appendix2) about how consumers think about the brand, and what else can be improved.
I went to the Ben Sherman store in Carnaby Street. I also went to its competitors stores for observational research. Staff at Ben Sherman have given me some general information about the brand and which helped me fill in my Marketing Mix.
3.0 Research Outcomes
3.1 Research of Secondary Research
3.1.1 Womenswear Market
* Half of women spend under £25 a month, emphasising the large number of budget fashion customers 32% of women spend £26-£50 per month in 2007
* Women who are 15-24s are the big spenders, as they spend up to £10 a month and 25% of them spend over £75.
* The 20-24 and 25-34 age groups, both of which are important to the fashion market, are set to grow, which is likely to boost spending on clothing.
* The current climate of celebrity culture has become a major driver of womenswear trends.
* Product innovation has been dominated by celebrity/designer collections in 2006 and 2007, but during 2008, retailers an brands are going to have to work harder to maintain the novelty factor in what is now a very crowed market, with a lot of 'names' shouting for attention.
* Premium collection will continue be a favoured area for development. The company will have to avoid looking too classic to attract women's interest.
[Mintel, Womenswear - UK - March 2008]
* In most product areas, the proportion of women spending over £100 a year or more is rising, meaning more room for premium collections.
* Jeans and a casual top are at the core of a woman's wardrobe, no matter how keen a fashion consumer they are.
* Jeans and casual tops lead the market and jeans are mainly for those who are under-55s (see appendix)
* The number of 20-24s is rising, which is a core target group for clothing retailers.
[Mintel, Clothing Retailing - UK - September 2007]
Strengths and Weaknesses in the womenswear market (Appendix 3)
Strengths
* Media and retailers spur interest in fashion
* Falling process change consumer attitudes, more impulse buying and disposability
* New retailers and collections which may widen the offer of sizes and styles
* Rising numbers of 20-24s
* Clothes shopping wins ground as leisure
Weaknesses
* Intense price competition squeezing margins
* Current fashion trends and weather unhelpful
* Little on offer for the growing number of mature shoppers
* Competition from other products, such as technology and services
* Interest rate rises dampen demand, longer term outlook uncertain.
3.1.2 Ben Sherman
* Ben Sherman has been expanding in America, Europe and Asia, but it has lost over one third of its UK sales. This is because of the brand is overexposed which causing in many stores refusing to stock it.
* The target market of the brand is 18 to 32 year old males.
* The brand sells a wide portfolio of menswear and womenswear and has been aiming to increase its proportion of womenswear within the marketing mix up to around 30%.
* The company is known for its casualwear, especially shirts and t-shirts. It is a major player in the UK branded shirts market in menswear, although its share has been under pressure because of competition from larger retailers' own brands.
* The brand was opening a London flagship. Ben Sherman has since opened a second UK store and has plans for 20 new retail outlets in the UK.
* Ben Sherman has been innovative in its marketing with its clothing featured in several electronic games - firstly as an advert on a football pitch side and then in an Atari game where players can kit out the characters in Ben Sherman clothing.
* Ben Sherman's latest adverts use stylish "reality" photographs eg two young men waiting on a bench in a foyer, a suited male shot against an interior in an old library.
* The brand will be more popular due to its heritage in mod culture, which is trendy nowadays.
* In 2004, the brand was acquired by US based Oxford, which also make private-label clothing.
(Mintel, Clothing Retailing - UK - September 2007)
* Ben Sherman spent £1.7m on advertising in 2003, whereas they spent around £0.3m - £0.5m between 2004 and 2006. ...
This is a preview of the whole essay
* Ben Sherman's latest adverts use stylish "reality" photographs eg two young men waiting on a bench in a foyer, a suited male shot against an interior in an old library.
* The brand will be more popular due to its heritage in mod culture, which is trendy nowadays.
* In 2004, the brand was acquired by US based Oxford, which also make private-label clothing.
(Mintel, Clothing Retailing - UK - September 2007)
* Ben Sherman spent £1.7m on advertising in 2003, whereas they spent around £0.3m - £0.5m between 2004 and 2006. In 2007, the company increased their budget into £1.5m.
(Mintel, Fashion Advertising - UK - November 2007)
3.2 Research of Primary Research
* I found that there are not many womenswear items in the Ben Sherman store, which might be only maximum 20 items. Customers are less likely to notice that there is an available range of womenswear in store.
* Questionnaires (appendix3) were completed by 20 participants in Carnaby Street. The findings from the questionnaires were that most of them do not know Ben Sherman has a range of womenswear or any womenswear products. I also found that more than half of them love listening to the music in their spear time and want to be fashionable. In addition, more than half of the participants want to have more womenswear garment and accessories in Ben Sherman store.
4.0 Theoretical Analysis
4.1 External Environment - Ben Sherman
4.1.1 5C's & PESTEL
5C's
5C's
Company
* Established in 1969
* World wide retail brand with strong British theme.
Collaborators
* Ben Sherman collaborated with PPQ (appendix 4)
(appendix 5)
Customers
* Small market size
* Quite loyal customers
* Quite frequent purchase
Competitors
* Actual
* Both direct and indirect
Climate
* PESTEL
PESTEL
POLITICAL
* ASA needs to be considered in advertising campaign.
* The UK government is very stable.
* There is a small increases in taxation policies
* The UK has good foreign trade relations with the EU, Asia and America.
ECONOMICAL
* Market and trade cycles.
* Revenue growth
* Deflation is expected to slow in the next 5 years, as retailers exhaust new low-price sourcing opportunities from Asia.
SOCIAL
* People concern about the size 0 trend which may affect the mental development of the teenagers.
* People are becoming more socially aware in terms of making sure that the products they use are fair trade and that the people that have made the garments have done so in accordance with the local labour laws.
* Falling prices and the mass production have led to more impulse buying.
TECHNOLOGY
* The 15-24 year olds are spending more time on the Internet.
* E-commence has been increased.
* Ben Sherman has its own official website and database, which can help to communicate with the customers.
LEGAL
* Product Safety Regulation
* Arcadia Code of conduct
* Revised Employment Act 2004
* Health & safety Act 1974 is applicable to all business
ENVIRONMENTAL
* People are becoming more concerned about green issues and environmental issue.
* Documentaries about global warming and other environmental issues for example AI Gore's documentary 'An Inconvenient Truth'.
* Increasing congestion charge for heavy carbon emissive vehicles.
4.1.2 Competitive positioning
Market positioning Map (Age/ price)
* This Graph shows that Ted Baker and Fed Perry have the similar target age group and in quite a higher price.
* H&M, River Island and Quicksilver offer a lower price to the market and target a younger age group.
* Ben Sherman and Timberland offer a similar price ranges to the market, but Ben Sherman targets a slightly younger market.
* French connection and Miss sixty are positioning in the similar age and price area.
* There is only 2 brands that have standalone stores, which are Quicksilver and Miss Sixty. Quicksilver has standalone womenswear stores with another brand name, called Roxy, whereas Miss Sixty is a standalone womenswear brand of the Sixty Company, which has also have standalone menswear store.
4.1.3 Competitor Analysis
Retailer
Target market
Core advertising Strategy
Product
Main Media used
on advertising
Analysis
Gap
20-35,
ABC1, C2
Broadsheets, glossies and outdoor - mainly London
Adult and children's clothing
Press,
outdoor
Struggling in very competitive market with little differentiation.
Ted Baker
Upper middle to premium
25-45
Product differentiation.
Care with distribution
Well segmented me's ranges.
Adult's clothing
Press
Distinctive brand personality carried through all the company's operations.
Strong menswear offer with broad appeal, strong future potential growth in UK and internationally.
Marks & Spencer (non-food)
45+, ABC1
High spending across all media, blockbuster TV ads
Adult and children's clothing
TV, press
Strong marketing and product innovation (i-pod)
H&M
5-24,
ABC1, C2
High-profile TV, press campaigns featuring stars like Madonna, Kylie
Adult clothing
Press, TV
Strong performer and good fashion appeal.
River Island
5-25,
ABC1, C2
Upmarket glossies, plus some offers in tabloids
Adult clothing
Press
The product hits the fashion mark perfectly and the stores/ windows are enticing.
Mango
20-35
ABC1
with a distinct London bias in their shopper base, focus on outdoor
Womenswear
Press
French Collection
Upper Middle
Store refurbishment.
Product Improvements
Online development.
May stretch into premium.
Adult clothing
Press
Ranges have been less tan enticing. Needs more differentiation to justify price point and stronger marketing.
(mintel, fashion advertising, 2007)
4.2 Internal Environment - Ben Sherman
4.2.1 SWOT
Strengths
* The brand has a heritage in mod culture
* Expand globally
* A background of music linked with fashion
* Has been innovative in its marketing - clothing featured in several electronic games
* Well known for its causalwear
* Has a strong British theme
* has many events frequently
Weaknesses
* Lack of womenswear items (appendix 5)
* Many fashion retail competitors in a similar selling price
* No clear image of womenswear (appendix 5)
Opportunities
* Expansion in online market
* Expansion in womenswear
* Loyalty card with discount on music product and Ben Sherman items
* Add some more UK-focused advertising and marketing, which may help enhance the brand's status and appeal
Threats
* Negative currency effects
* Fast fashion : cheap
* Mortgages rising
* Credit crunch
(observation, mintel 2007)
4.2.2 Marketing Mix 7P's
Product
* Ben Sherman offers a collection of formal and casual wear for men. Including shirts, suits, shoes, accessories and other items.
* The flagship store in London sells an assortment of clothing. The mens department is upstairs and a ladies clothing range is located downstairs which complete with mens footwear.
Price
* City shirt £45
* Jacket £45 - £80
* Harrington Jacket £135
* T-Shirt from £14
People
* Staff are well trained, friendly and helpful.
* Staff have to wear the seasonal garments of Ben Shermn when they are working in store.
Place
UK
* London
* Manchester
* Thurrock
* Reading
* Birmingham
* Online shopping: http://www.bensherman.com
International
* Canada
* USA
* Hong Kong
* Japan
* Korean
* Middle East
* Australia
[www.bensherman.com/client/index.aspx]
Physical evidence
* Clean atmosphere
* Bright lighting for optimal view of items
* New seasons shown at front of store
* Open-end window display allowing consumers to see into store.
* Mannequin displays situated all around the store.
Process
* Most of the products are made in China and sent to different Ben Sherman in the world.
* Most of the products are designed by EU designers,
Promotion
* Online sales up to 50% off.
[www.bensherman.com, 2008]
4.2.3 Product Lifecycle
* The current position for the brand is at a maturity stage. Although the sale in the last three years has lost over one third of its UK sales, it has been expanding in America and Europe and has plans for 20 new retail outlets in the UK. The brand needs more interesting ideas and products to increase the sales.
4.2.4 Boston Matrix
Stars
Men's shirt
Question Mark
Ladies clothing
Cash Cows
T-shirt
Dogs
N/A
[http://www.quickmba.com/strategy/matrix/bcg/,2008]
* Men's shirts are the stars of the brand, as they are the top selling product and have been experiencing high growth rate with a quite high share of the market.
* T-shirts have a higher market share but with low growth, so they are categorised as Cash Cows.
* The ladies clothing range is a question mark, as it has a low market share in a high growth market. The company need more money spent to develop market share or the product.
* However, there is no product has a small market share in a mature industry, which means the company is targeting the right target market.
4.2.4 USP
The Unique Selling Point (USP) of Ben Sherman is the designed theme of 10 decades in the womenswear collection. It shows a feminine designs, where Ben Sherman salutes 45 years of British music and style. The collection features bold gingham checks with mod inspired scooter coats and skinny trousers, sharp clean tailoring, slim silhouettes with black and white geometrics and highlights of industrial pink. 90's festival summer dresses in bold reds and yellows with bright classic Ben Sherman checks resonates the relaxed and carefree attitude of the era.
[www.bensherman.com, 2008]
4.2.5 Five Force Analysis
Threat of new entry
It is not easy for new competitors to get enter, because Ben Sherman has a heritage brand name and is an expert on running a business with music elements.
Threat of Substitution
substitution can reduce demand for a particular classic products(e.g. shirt), when there are many alternatives. For example, H&M offers a similar products with lower prices, which would become a threat to Ben Sherman.
Buyer Power
Ben Sherman showed and practiced Preference in using Asian suppliers like the other high street retailers. However, it has more power to negotiate because of a lot close alternatives.
Competitive Rivairy
There are many competitors that offer similar attractive products in the market with similar prices as Ben Sherman. Ben Sherman Failed in this area, so its design for womenswear has to be unique.
4.3 Segmentation, Targeting & Positioning
4.3.1 Segmentation & Targeting
Segmentation
Geographic
The segmented consumer is all over the country, but mainly in London, South, Wales/West/ South West and Scotland.
Psychographic
o Broadsheet readers
o Tend to go shopping in Waitrose and Sainbury's
o Light commercial TV viewing
o Music lovers
o Internet users
VALS Segment
* Believers. These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favour British products and established brands. Their lives are centered on family, church, community, and the nation. They have modest incomes.
* Strivers. These consumers are trendy and fun loving. They favor stylish products that emulate the purchases of people with greater material wealth. They believe shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.
* Thinkers. These consumers are the high-resource group of those who are motivated by ideals. They are mature, responsible, well-educated professionals. Their leisure activities center on their homes, but they are well informed about what goes on in the world and are open to new ideas and social change. They have high incomes but are practical consumers and rational decision makers.
Demographic
Age and life cycle stage: 18-32
Life stage: Pre-/no family
Gender: male and female
Income: higher than in average
Generation: young generation
Social class: ABC1
Behaviouristic
Occasions : mostly frequent and impulsive purchases
Benefits : get the style, discount and social responsibility
Usage rate : quite often
Loyalty status : quite loyalty
According to Acorn classification, Ben Sherman's consumers relate to the following segments:
Table 2. ACORN type
Type 14
Older professionals, larger houses and converted flats
* High qualified
* Live in largely suburban area
* Have high income and high levels of saving and investments
* Broadsheet readers
* Eating out
Type 15
Affluent urban professional, flats
* High qualified
* Either young singles or couples
* Have relatively high disposable incomes
* Most likely to go skiing
* Enjoy good food and wine, both at home and in restaurant.
Type16
prosperous young professional
* Aged 25-29.
* Highly qualified
* Making their way up the career ladder in the professions.
* Earn high salaries
Type 17
Young Educated Workers
* Enjoy socializing life
* Self-improvement
* Living close to the centre of activity
* Do not like many newspapers.
[http://www.businessballs.com/freespecialresources/acorn%20demographics%202005.pdf]
Pen Portrait
Jodie is 27 years old and lives in Camden Town, London. She lives with her boyfriend, Ken. She is a student and works at superdrugs as a part-time job. She has not a heavy work schedule and has 2 days off in a week. She earns less than the average UK income. She is very interested in fashion, but she wants to wear comfortable and plain clothes. She wears jeans most of the time but she love changing her style due to the fashion and music trend. She enjoys online shopping. She is very sociable and likes go clubbing. She sometimes likes to go to the cinema with her boyfriend. She likes to go shopping at Primark, Topshop and H&M, as she thinks the prices she can afford. She does not want to save money, as she does not have much future plan. Therefore, she shops more impulsively. She only thinks music, fashion and her boyfriend are her life.
Jodie is a keen customer of Ben Sherman, as she like the concept of mixing fashion and music together and she can shop for her boyfriend when she goes shopping in Carnaby Street. However, she thinks the items of womenswear are not enough for her choose. She want to be fashionable and in a way to express her interest at music. Therefore, she tends to wear band t-shirt with other accessories.
She likes travelling once a year during the summer with her boyfriend or her friends. As this all they can only afford to go to the other Europe countries with low price air-plane tickets. They tend to try and save up that little bit extra for shopping and music.
In her spear time she socialises with her friends by listening to the music together and goes shopping together. She has a band with her friends, called 'HOT THINGS'. She plays piano and the other 2 plays guitar and bass guitar. They keen on 'Queen' and 'Gun & Roses', those bands that are not pop in their generation. She does not drive and has no car, as she thinks London is so convenient travelling everywhere by public transport.
5.0 Conclusion
In conclusion, it is possible for Ben Sherman launching commercially viable womenswear standalone retail store in UK. This is because
* Ben Sherman has been expanding globally, which it is well known in the world with British based. Therefore, the company has enough power to launch a commercially viable womenswear standalone retail store in UK.
* The brand spent £1.5million on advertising last year, which means it financial status is strong.
* The number of 20-24s is rising, which is the target market of the brand.
* There are many music listeners who are female due to my questionnaire.
* Statically, the womenswear market is expanding, which means the womenswear market is bigger than the men's.
* For a long term business, womenswear have a bigger potential to expand than a menswear. Womenswear will earn more due to its bigger market. Although it needs carefully marketed and invest more at the beginning, the money will come back soon. For example, Quicksilver - Roxy.
* Music element in a fashion brand is niches in the womenswear market, but also an Unique Selling Point.
Recommendation
Objectives
* To increase brand awareness, as a musical brand by at least 40% with chosen advertising and PR media in 3 months.
* To increase sales by at least 30% by achieving a series of promotional marketing tools, making more interesting in 3 months.
* To increase market share by 10% by increasing sales and musical brand awareness in 3 months.
* To increase footfall by 40% in 3 months by correctly marketing and advertising a new women's clothing range and increasing consumer interest in brand through editorials.
Stretegy
* A 5 year plan will be launched for a womenswear standalone stores in the UK and may run globally afterwards.
* The first Ben Sherman womenswear standalone store will be located in Carnaby Street, which opposite of the Menwear store.
* The design of womenswear will be Pop and Rock but also can reflect a British theme.
* A new logo and brand name for the womenswear standalone retail store should be created. This would helps for sex identity for the brand. (e.g. Ben Sherman-Girls / Shinny Ben Sherman)
* Sponsor with new artists or bands who are females.
* Update online store more frequently, especially the new ranges of women's clothing.
* Online digital marketing, sending invitation to current customers with their girlfriends/ friends for opening store events
* Online international market, providing more designer women's clothing
Strengths
Weaknesses
* Attract more female consumers
* Widen the market
* Ben Sherman can have a female orientated.
* Need more money for management
* May not get the good result as before
* More stuff would be needed
* High cost to re-create a new image
Appendix 2
Questionnaires
. Sex : ? Male 2 ? Female 18
2. Age Range ? 15 - 20 ? 21 - 25 ? 26-30 ? 30 >
7 9 4
3. Do you like listening to the music?
? YES 18 ? NO 2
If YES, what type of music do you like?
? POP ? ROCK ? R&B ? JAZZ ? others _________
8 7 3 2
4. Do you want to be fashionable?
? YES 19 ? NO 1
5. Have you ever bought any products in Ben Sherman?
? YES 15 ? NO 5
6. Do you think Ben Sherman is a specialist in Menswear?
? YES 17 ? NO 3
7. Do you know there is a range of womenswear in Ben Sherman?
? YES 7 ? NO 13
8. What others products would you want to see Ben Sherman in-store ?
? Womenswear 10
? Accessories 8
? Cosmetic 0
? Perfume 1
? Others ________________
Ben Sherman Menswears - current advertising
[www.bensherman.com, 2008]
Appendix 5
Women's Spring/Summer 2008 Collection
[www.bensherman.com, 2008]
References
Books
Kotler, P., Wong, V., Saunders, J. and Armstrong, G. (2005) Principles of Marketing, 4th European edition. New Jersey: Prentice-Hall
Wilmshurst, J. & Mackay, A. (1999) The Fundamentals of Advertising 2nd Ed., Oxford: Butterworth Heinemann
Internet
* Ben Sherman official website [online]
Available: http://www.bensherman.co.uk [accessed 26 June 2008].
* Mintel report., 2007. Fashion Advertising. [Online].
Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&&type=RCItem&sort=relevant&mode=accessible&list=search_results/display/id=220284/display/id=306942#hit1[accessed 28 June 2008].
* Mintel report., 2008. Womenswear. [Online]. Mintel.
Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&&type=RCItem&sort=relevant&mode=accessible&list=search_results/display/id=280183/display/id=329890#hit1 [accessed 28 June 2008]
* Mintel report., 2008. Clothing Retailing. [Online] mintel.
Available at : http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=220274/display/id=297091#hit1 [accessed 28 June 2008]
* Fashion style you the fashion blog. 2008 [online] blog. Available at : http://www.fashionstyleyou.co.uk/ben-sherman-timeless-fashion/ [accessed 28 June 2008]
* The Product Life Cycle. [online]
Available at : http://www.quickmba.com/marketing/product/lifecycle/ [accessed 25 June 2008]
* Porter's Five Force [Online] Available at : http://www.quickmba.com/strategy/porter.shtml [accessed 25 June 2008]
* Boston matrix [online]
Available at : http://www.quickmba.com/strategy/matrix/bcg/ [accessed 26 June 2008]
2