T-shirt Industry Market Analysis

The assignment presents a comprehensive analysis of the T-shirt industry, focusing on its competitive nature and the challenges faced by new firms. It emphasizes the importance of product quality, range, targeted marketing, and understanding consumer preferences for establishing a successful brand in this highly competitive market.

T-SHIRT CHALLENGE

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Assignment......................................................................................................................................3
1. Designing of brand/Logo.........................................................................................................3
2. Potential target market............................................................................................................5
3. Income Statement.....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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INTRODUCTION
In the modern complex corporate market, firms are facing huge competition. In such
market it is very difficult for the organizations to survive. To sustain in the market for longer
duration it is necessary to offer products as per the needs of consumers and to target correct
audience for that. Present report is based on ERMOSA which is planning to enter into T-shirt
industry (Phan and Vu, 2015). Cited firm is planning to provide wide range of t-shirts for 14-30
years women. Assignment will design the brand logo and it will discuss the potential target
market for the product and services. In addition, budget calculations will be done in order to
prepare income statement.
ASSIGNMENT
1. Designing of brand/Logo
ERMOSA is upcoming brand of clothing industry, cited firm is planning to enter into t-
shirt industry and wants to open physical outlet in the Spain, Barcelona and Rambla.
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Illustration 1: Logo of ERMOS

Company is aiming to get established in the UK market and want to attract more women
towards the brand. It is planning to offer variety of products to target audience so that they feel
happy and be loyal towards the brand (Boehner and Gold, 2015).
In the globalized world there are many fashion houses those which are famous for their
brand. But they are paying zero attention on ethics and values. It is essential to look upon ethical
values first otherwise firms will not be able to sustain in the corporate market for longer duration
(Lin, Lee and Lin, 2013).
Ethics and Values
 ERMOS is having clear vision of not to get high profit, just to satisfy the consumers by
providing them quality products and services.
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 Company will treat and behave good with the consumers, it will not disrespect the
women.
 There would be clear communication regarding product quality, price and replacement
policy so that no confusion will take place (Hashim and Hamzah, 2014).
2. Potential target market
Target market is the particular group of persons those who can buy the products and
services of company easily. For identifying the potential target market firms have to divide
population into sub group. Segmentation can be done on the bases of age, gender, income,
religion, race, city, country, social status of the population. All firms target different consumers
as per their aim and objective (Murshid, Halim and Osman, 2014).
Needs of different users are differed from others so it is very important to identify the
desires of public and accordingly companies have to offer them products. In the clothing industry
competition is very high, there are many big brands such as Prada, Michael Kors etc. These all
are big brand and having good command over market. In such high competitive environment it is
very difficult for ERMOS to survive in the industry for longer duration. But if a new firm is able
to provide quality products and services to its clients and is able to satisfy them then it would be
able to establish in the market significantly (Sreenivas, Srinivasarao and Srinivasa Rao, 2013). It
is necessary for the cited firm to adopt effective marketing mix strategies so that it can get
established in the market easily and can achieve its long term objectives.
Marketing mix:
Statistical records show that marketing is the way that can support in attracting mass
audience and to develop unique brand image of the company in front of customers. Marketing
mix is the tool that assist in selecting appropriate products for specific consumers at affordable
rates. It includes; product, price, place and promotion. Apart from this marketing mix involves
physical evidence, people, process too (Aghdaie and Alimardani, 2015). Effective strategies can
help in sustaining in the market for longer duration. Product: It is one of the main element of marketing mix, in which ERMOS tries to offer
variety of products to consumers. It offers leather t shirts, causal, sports t-shirts for
women. Now a days women are having high interest in sporty wear so it provides them
products as per their requirements (Coffee Jr, Sale and Henderson, 2015). Quality of the
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cloths are great and that can satisfy the needs of girls. For college girls those who are
between 15-25, cited firm offers them party wear great funky cloths- t-shirt. For people
those who are between 25-30 ERMOS offers official t-shirts that look nice and decent.
Thus, cited firm has wide range of cloths for different customers, so it identifies their
needs and provide them products accordingly so that it can enhance their satisfaction
level (Norton, 2013). Place: ERMOS is planning to open more retail stores in Spain, Barcelona and Rambla. It
has planned to open the physical outlets in most rush area so that maximum people can
get to know about its products and services. Stores at visible place will support in
increasing number of customers of company and by this way cited firm will be able to
establish its branch in the market significantly. It has deep research about locations where
people go mostly, it will open the retail store in such type of places. This strategy will
assist in accomplishing goal of the organization soon (Jensen and et.al, 2015). Promotion: It is one of the important tool of marketing mix with the help of this
organization can promote their brands easily. Promotion is the great way that can help in
establishment of the brand and it can support in increasing sustainability of the company
to great extent. ERMOS will use promotional camps and social media marketing tools for
promoting the brand name. Cited firm is using social media marketing effectively, it
advertises its t-shirt on face book, Twitter significantly and give description about special
cash discounts and trade discounts etc. By hearing discounts most of the women get
attracted and it will help in increasing sales volume of the company to great extent. In the
promotional camps it will take support of organizing events that can make people aware
with the brand and its uniqueness (Murshid, Halim and Osman, 2014). Price: It is another essential factor that influence the mind of consumers to great extent.
If company offers products at affordable rates then maximum people will get attracted
towards the brand, on other hand if company offers costly goods then customers will turn
their mind and they will not buy the products of new company. By looking upon this
factor, ERMOS has planned to keep its products price low. It has adopted penetration
pricing strategies in which it will keep its t-shirt prices low in the initial level and if sales
will grow then it will increase its rates after certain time period (Jensen and et.al, 2015).
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This strategy will support in attracting women towards the brand because they like to buy
quality products at lower rates.
Target market of ERMOS:
Potential target market of ERMOS are women those who are between age of 14-30 years.
These are having more interest in the latest fashionable cloths and they like to shop a lot.
Women, girls are shopaholic and they spend more than 30% of their income in buying cloths.
Thus, this target is having potential and company can grow well. Apart from this, women are the
only customers those like to purchase quality products at lower rates. They like to get discounts
and gifts on their purchase. Thus, according to strategy of the ERMOS women age between 14-
30 year will be great target market for cited firm (Aghdaie and Alimardani, 2015).
By targeting to them company will be able to enhance its sales volume and it will help in
increasing sales volume of the organization to great extent. College girls who are between 17-25
year, they like to wear sporty t-shirt to look nice and different, whereas official women age
between 25-30 will like to buy trendy cloths but they should be decent. Cited firm is able to
provide them products as per the needs of them thus, his target market would be beneficial for
the ERMOS. In the targeting strategies cited firm has focused on demographic factor that is age,
but it can also consider the income factor and can offer variety of products to low to high income
group women. By this way organization will be able to accomplish its objective soon and it will
assist in gaining competitive advantage to the organization (Jensen and et.al, 2015).
There are many factors that can influence the working of the organization to great extent
such as political, economic, social, technological etc. By this way over all working of the cite
firm can get influenced. So it is essential to design the activities properly so that ERMOS and
establish its business well and can satisfy its consumers.
3. Income Statement
Budgeted
funds
available 200
Variable
cost
T shirt
Mono print 3
T shirt full 5
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colour
Mono print 5
Full colour
print 7
hooded
sweatshirt
mono print 14
Hooded
sweatshirt
colour print 16
Total
variable cost 50
Fixed cost
Marketing &
advertise20
ment
Total fixed
cost 20
total cost 70
Net Profit 130
CONCLUSION
From the report it can be concluded that T-shirt industry is facing huge competition and
new firms have to provide quality and wide range of products to consumers in order to establish
the brand in the market. It is necessary to target the potential buyers so that they buy the services
of organization that would help in increasing sales volume of company and it will support in
achieving goal of the firm soon.
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REFERENCES
Books and Journals
Aghdaie, M. H. and Alimardani, M., 2015. Target market selection based on market segment
evaluation: a multiple attribute decision making approach.International Journal of
Operational Research. 24(3). pp.262-278.
Boehner, R. and Gold, S., 2015. The influence of the marketing mix on the diffusion of
innovation: Bass model redux. Browser Download This Paper.
Coffee Jr, J. C., Sale, H. and Henderson, M.T ., 2015. Securities regulation: Cases and materials.
Hashim, N. and Hamzah, M. I., 2014. 7P's: A Literature Review of Islamic Marketing and
Contemporary Marketing Mix. Procedia-Social and Behavioral Sciences. 130. pp.155-
159.
Jensen, T. and et.al., 2015. The Effect of Prices for Incidental Products in Web Page Promotions
on Consumer Price Perceptions for an Unrealted Target Product. In Revolution in
Marketing: Market Driving Changes (pp. 128-128). Springer International Publishing.
Lin, T. T., Lee, C. C. and Lin, H. C., 2013. Analysis of customer profit contribution for banks
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Murshid, M. A., Halim, M. S. B. A. and Osman, A. B., 2014. Assessing the relationship between
marketing mix strategy and physicians' satisfaction through perceived value in Yemeni
pharmaceutical industry. Advances in Environmental Biology, pp.662-675.
Norton, D., 2013. Egocentric Biases In Consumer Judgment of Products With and Without
Target Market Labels.
Phan, T. T. H. and Vu, P.A., 2015. The Impact of Marketing Mix Elements on Food Buying
Behavior: A Study of Supermarket Consumers in Vietnam.International Journal of
Business and Management. 10(10). pp.206.
Sreenivas, T., Srinivasarao, B. and Srinivasa Rao, U., 2013. An analysis on marketing mix in
hospitals. Int. J. Adv. Res. Manage. Soc. Sci. 2(4). pp.187-207.
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