Understanding the Environment

A summary of the content provided by Cotton On Group, an Australian retailer, is as follows. The company has identified threats and opportunities to maintain its value propositions for its target market at an international level. To achieve this, they have implemented efficient practices such as recycling commodities, minimizing raw material usage, and reducing energy consumption. They also utilize social media platforms like Facebook and Instagram to interact with customers and promote their brand. The group's marketing strategies include competitive pricing, product promotions through various channels, and innovative products and services. Additionally, they have undertaken renovations in their outlets to create a new shopping atmosphere for customers.

Marketing strategy Development

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Contents
Issue 1 Brief description of the ‘Cotton On’ Group................................................................................1
Mission Statement or Vision.................................................................................................................1
Reason for undertaking orientation of Cotton On Group..................................................................1
Brief description of the product(s) offered by Cotton On Group......................................................2
Brand’s role in Cotton On Group’s marketing strategy.....................................................................2
Issue 2 Analyzing 5Cs for the Cotton on Group......................................................................................3
Company – SWOT................................................................................................................................3
Customers of Cotton on Group............................................................................................................4
Collaborators of the group....................................................................................................................4
List of Competitors................................................................................................................................5
Context...................................................................................................................................................5
Issue 3- Marketing Research....................................................................................................................5
Issue 4- Developing Market Strategy.......................................................................................................6
Issue 5 – Developing Market Tactics........................................................................................................8
REFERENCES........................................................................................................................................12

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Issue 1 Brief description of the ‘Cotton On’ Group
In the following assignment, we are considering an example of ‘Cotton On' Group which is a
global chain network in the line of the fashion industry. The Cotton On Group has it’s
headquartered in Geelong, Australia. It is the popular organization that has been working in the
fashion industry and deal with the provision of menswear, women’s wear as well decent clothing
for adolescents as well as young aged children. This organization started its process of work in
the year of 1991.
Mission Statement or Vision
Their Mission statement is: "We will be the dominant value fashion brand globally."
They have a visionary mission to become one of the most preferred brands on the globe. As a
group, they have belief in the big level innovations which are to be coordinated with the fierce
effort so as to keep them revived in the fashion industry. They believe in putting effort for today
in one go without any breaks or stoppage so as to make most of today and look forward in future
so as to make use of unexplored opportunities. They are willing to expand their presence on the
global level by becoming part of the overseas part of the world level communities.
Reason for undertaking orientation of Cotton On Group.
This organization has been considered so as to increase the popularity of the image of the
product in the arena of the market in Australia. In this assignment, there is a framework given
regarding the process by which organization can attain efficiency in the management so as to
attract a large number of customers through the evaluation of the market trends and activities. An

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overall synopsis for the organization has been given including the target range of the customers
as well as the plans of extending its scale of operations. Under the customer evaluation, the plan
is to design a strategy for marketing so as to invite a large range of clients under different
segments of age structure.
Brief description of the product(s) offered by Cotton On Group
The products that are offered by Cotton On Group ranges from clothing for
men as well as women as well as accessories and elevated apparel range CO
by the group of Cotton On.
Cotton On Group majorly hold its dealings in the items about the field of
fashion and thereby facilitates the massive level of items in the same
industry than any other local retail outlet. It facilitates fashionable and cost
competitive brand quality on account of its differentiating strategies for
marketing. The most important element of the group is the choice of its
location since it has its outlets with proximity to the market so as to attract a
large number of customers.
Brand’s role in Cotton On Group’s marketing strategy
The group has been considered to be one of the creative as well as exquisite
of the retailers that are existing on the globe. It aims to create an everlasting

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impression in the fashion industry through its focus on the better level of
knowledge regarding the prevailing trends in the lines of fashion that are
required for its demanders.
Issue 2 Analyzing 5Cs for the Cotton on Group
Company – SWOT
Strengths- The Outlet provides for the safe and comfortable working environment for workers
as well as for the buyers. The quality service to the customer has always been the priority for the
organization. The young and energetic workforce is being hired for the jobs to deal with the
customers after a good session of training for around a week to them.
Weakness- to keep control on the wages and salaries so as to conform to the sales as per the
budget they have to cancel the shift of some of their workers. As a result, there is not enough
staff at the time so as to handle the dealings at the store. Due to lack of man resource, the quality
of servicing the customers get degraded. Moreover, they under the production in large amount
leading to low-quality merchandise as well as fluctuations in the price level.
Opportunities- They have an opportunity to expand their operation overseas in the Asian
Market so as to explore the need of the foreign customers. Their production process provides
opportunity to the buyers with a more varied choice of products.

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Threats- There can be potential entrants in the market that can stimulate the competition in the
industry. Their stores are located in the much-centered area to other competitive stores nearby.
Moreover, there is the day to day change in the taste and preferences of their customers.
Customers of Cotton on Group
Figure 1 Target and Coverage Plan of “Cotton On” Group
In the given figure, the idea has been given regarding the limit to which the customer are
included in the organization. The main segment of the population that is being included by the
Cotton On Group consists of a huge segment of youth culture of men as urge so as to keep
themselves updated with the trending fashionable products in the market. As per the
organization, the fashion cannot and should not only be limited to the fitted and slim population
segments but should be inclusive of the products for all the size categories. According to the
group, everyone should be able to purchase clothes as well as accessories as
per their need as well as the sense of fashion.

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Collaborators of the group
The group has been planning to enhance their collaboration power especially with Cartoon
Network, Dick Bruna (creator of ‘Miffy' a famous character in the books of kids) as well as with
Disney productions. It has also been planning to conglomerate with other organizations at
international level.
List of Competitors
Zara( all over the world), Hang Ten, Giordano, IPzone (in Singapore) which are also dealing
with the brands to the identical group structure as that of the Cotton on a group.
Context
Culture- The big reason for the achievement story of Cotton on has been its devotion to the
people so as to keep up their quality standards for the products as well as services. For the group
to uphold the culture of their self-made brand, the team working on production are openly
exposed to the dynamics of trends and cultures in the market and society.
Issue 3- Marketing Research
The Group follows the process of reviewing their framework of structural design as well as their
standards of level of satisfaction they facilitate to their clients. They have the multiple groups to
have secured confidential communication with the clients to meet up with their dynamic needs.
Hence they have alignment among their different departments so as to deal with any customer at
any time in what so ever situation at any of their available outlets. The Group being a multi-
brand organization is the major reason how it can overcome the requirement of developing a
different segment so as to provide the customer service operation. At present, there are eight
customer service centers of the organization in Australia itself. They provide for an identical

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form of services to their customers throughout the globe. The outlet facilitates products at
competitive cost so that it can accumulate the customers in large under the section of average
income earners because the majority of the population in Australia are in between the rich
section of the society as well as the lower section regarding earnings. The organization
provides their supplies at a very affordable cost so as to invite their
customers at large under the segment of average income earners which
constitutes the largest section of the population in Australia. Through their
customer service analysis, they make an evaluation of the changing needs of
their customers. They keep on their plans to innovate their products in the
larger lines so as to give tough competition to their competitors on account
of quality as well as a variety of products offered. The collaborators play an
important role in the sense they have to support the Cotton on the group to
serve them with financial funds (if needed) as well as to promote their
products through providing sponsorship to the campaigns announced and
executed by them.
Issue 4- Developing Market Strategy
The audiences that have been a target by the Cotton on Group includes the
people under the segment who are low-income earners who are provided
with highly fashionable products at the threshold level of costs possible. The
interval group of the audience also incorporates the population under the
category of middle level of income group having a great level of potential
regarding the enhancement of popularity of the retail outlet. Their target

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market majorly comprises of kids, teenager as well as youngsters who want
to be trendy but does not want to spend more money on such products. As
per their secondary research, they have 99% potential to expand their
coverage in the African countries, 90% of the Muslims.
The Group has been undertaking the measures to improve through their international level reach
to minimize the adverse impact on the environment of their target customers. They have their
effective guidelines in the policy framework so as to maintain the value propositions for their
target market through its international level access. They have identified the threats as well as
opportunities so as to undertake efficient practices. They have a set up so as to undertake the
recycling of the commodities across all the outlet as a part of their generalized code of conduct.
(Smallbusiness.chron.com, 2017).
As a part of renovating their outlets, they have tried to make minimum requirement for the
utilization of newly produced raw materials and focus on utilizing the remaining raw materials of
their earlier produced structure so as to maintain its historical value. All their outlets have tried to
make reuse of the hanger that is made up of plastic. Moreover, they have initiated the utilization
of reusable hanger made of cardboard materials. Additionally, the reusable, as well as renewable
carry bags, are utilized so as to reduce the adverse impact of land pollution caused due to land
fillings. Moreover, they have undertaken the initiatives so as to minimize their consumption of
energy at the global level through the use of LED from of bulbs as well as lights. As a general
perception, it is believed that use of social media in the form of Facebook, Instagram, or the
website of the organization is a convenient as well as an efficient way so as to interact and
instigate the customers allowing the group to display its personality structure. As a part of the
awareness of the group as well as a measure to increase their structure at the level of masses, the

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use of social media has been considered as an important ingredient in the target market. But there
are high chances of grave fluctuations being witnessed as per the dynamic needs of the
customers (Cottonongroup.com.au., 2017).
Issue 5 – Developing Market Tactics

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On the pricing level, the Cotton On group has already been taking
initiatives so as to create the value among their users( rich section, middle-
income earners as well as low-income earners). To keep their prices at the
competitive level, Cotton On Group must keep on undertaking the initiatives
so as to enhance their value of the brand by analyzing deeply about the
features of the trendy items that they already offer as well as what other
areas can further be explored. The knowledge relating to price prevailing in
the market must be as strong so as to make the group less plagued by the
action or reactions of the forces of competition. To make the public aware of their

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competitive pricing strategy they can arrange for the campaigning so as to monitor their
performance on the regular basis. They can make arrangement for the fashion
shows or events through their sponsorship programs as well as the support
of their collaborations. Other than only making the strategies for pricing,
there were other strategies of marketing that were used by Cotton On Group
to popularize the brand value. Various offers about the price concession can
also be provided particularly for the stakeholders
To promote their products, the common methods that can be used by the
group can be the use of public transports so as to advertise their product,
through the use of pamphlets as well as posters and visual advertisements
on the roads. They can also publish their fashion magazines on the weekly or
monthly basis so as to keep the client updated with the emerging
fashionable products. Selling their products through the social media devices
is an efficient way so as to give design structure to the segmented
population and thus would attract the customers. The use of schemes of
lucky can be made through the use of social media websites like Facebook,
Instagram so as to promote the products by making the large segment of
youth aware about the fashionable items flooding in the market. The social
media has been used through the creation of links for the outlet information
and inviting the audience to buy their products.

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Place- In the lines with keeping up with the changing world, there can be
changes made in various outlets of the group with an introduction to a new
atmosphere of shopping to the customers through undertaking renovation.
On the whole, the changes can be made in the display of the outlet as well
as lighting variations can be undertaken so as to distinguish the group from
its rivals. They can undertake the process of opening new outlets at the
places which have proximity to the market so as to have a confrontation with
the larger market area. Furthermore, the campaigns can be arranged at the
new venues by inviting famous celebrities so as to promote the newly
established venues in Australia.
Product- Cotton on the group, can undertake innovation by exploring the
areas where it has not been producing as well as promoting their already
existing products by giving various discount coupons to their regular and
assured customers. They can adopt better methods of production through
the use of new technology so as to undertake better method of production.
The sponsors including Seven Networks can support to undertake the
innovation of the fields of the product under which outlet can explore
through the use of electronic media.
For example, through the use of television advertisements relating to the
brand, etc. There are various channels in the field of the market that are
used on a direct basis to promote the brand for example through the use of
e-mails, telephonic calls.

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REFERENCES
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Cottonongroup.com.au. (2017). A new Melbourne hub for Supre. [online] Available at:
http://cottonongroup.com.au [Accessed 15 May 2017].
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Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Siegert, G. and von Rimscha, M.B., 2013. Economic bases of communication. Handbooks of
communication science, 1, pp.123-146.
Smallbusiness.chron.com. (2017). Small Business. [online] Available at:
http://smallbusiness.chron.com [Accessed 15 May 2017].
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