Management and Marketing : Assignment

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Student ID Number: 33562983Programme of Study: BSc Management and marketingModule: Developing Business Ideas and OpportunitiesDate: 10/4/20Title: Cretins feasability analysisWord Count: 2563In this essay, I aim to carry out a feasibility analysis of a new concept brand called Cretins,discussing and evaluating the idea from both a business and person focused standpoint.According to Castrogiovanni, (1996) this involves the collection and analysis of data prior to thebusiness start up, and using knowledge thus gained to formulate the business plan itself. Thisbrand will operate in the fashion industry, with a focus on the second hand apparel market. Thisindustry, once characterized as being a small niche market, has grown to be a multi billion dollarglobal trade, with the number of resale stores increasing by 7% per annum for the past twoconsecutive years (Xu et al, 2014). I aim to capitalise on this growing trend through creatingunique up-cycled garments and accessories from second-hand pieces of apparel. I will be makinguse of my entrepreneurial and creative ability, and evaluating whether my idea will be viable inthe current market.Background and Operations ManagementWearing different and alternative clothing, helps individuals establish a unique personal identity,in addition to a unique social image(Workman and Kidd, 2000). Drawing on this, I aim to createa brand, specialising in using a variety of vintage and second hand apparel from boiler suits totuxedo jackets. These items will then either be stripped down, purely to the raw materials and
then crafted into a whole new form of apparel or, will instead just have added detailing such assewn on badges, screen printed designs and hemmed stitching to suggest a certain aesthetic.Production will be done at my residence, with movement to a dedicated studio once demanddictates it. Once, demand picks up, I will need to hire various designers and artists to startproducing the designs in partnership with me. To oversee production, I may need to employ acreative director. Their role will involve working to stimulate new ideas, whilst developing andpreserving the brand’s communication identity, vision, and voice (Mallia, Windels and Broyles,2013).I aim to source the materials from vintage stores, charity shops or through social mediaplatforms. This new business will start off with basic garments and accessories such as trousers,shirts and bags, with later variants coming in the form of more complex construction, such as suitjackets. A Deloitte (2015) survey on what premiums consumers would pay for customisedclothing concluded that over 80% are willing to pay more. As each garment will be a 1/1, I willaim for a more premium price point, say from £35-£100, depending on branding of the piece andthe amount of time and effort spent on production.A dedicated distribution platform through my website will be the main marketplace with linksand referrals through social media platforms to gain more traffic. These media platforms willalso act as a discussion and feedback source, allowing for interaction with customers, in additionto enabling the ordering of custom pieces. As Cretins gets bigger, there will be a larger focus onmaking sure that customers are happy, especially loyal ones that are coming back for repeat
purchases. Therefore, a customer service manager may need to be employed to analyse salesperformance and feedback customer requirements. Furthermore a study by Adebanjo (2008)found that hiring these managers lead to an increase in order processing times and also overallsales with new and repeat customers.Target MarketIn the US, there is a 14.2% year on year growth in the apparel and accessories ecommercemarket, with the average consumer spending around 100$USD (£81) (Statista, 2020). I aim tobuild upon this trend, utilising this platform in order to promote my goods and serve the correctpotential consumers. The first way to do this is to segment the market, this involves dividing themarket into smaller groups of buyers the two main classification methods I've chosen are throughdemographics and psychographics. A survey by Deloitte (2020) concluded that 16-24 year-oldswere the biggest demographic interested in personalised clothing, 12% higher than any othergroup. Being amongst that age bracket, I have access to and an understanding of consumerinterests through social groups, providing me with further knowledge about their needs.Segmentation through psychographics will give insights to consumers beliefs and buyingbehaviours. A study byCervellonetal(2012) found consumers create and express their uniqueand socially conscious self through choosing to purchase secondhand clothing. By aligning myproduct appeal – originality and ethical consciousness - with the behavioural characteristics ofmy demographic, I am able to build and target my potential consumer pool.Knowing that choice is often dependent on whether or not the brand is congruent with the self-image that the person wants to obtain (Farhat and Khan,2012), I aim to target socially aware
potential customers, between the ages of 16-24 who are willing to spend extra money on clothingin order to create awareness of their individuality through personal style. By targeting andbuilding upon this group ethos, I hope to build a core fan base that will engage in repeatpurchasing and organically grow our brand.Supply Chain RelationshipsMorgan and Hunt in Carter, C.R. and Jenning (2002) suggest that commitment and trust can actas key mediating variables in successful supply chain relational exchanges. Building upon this, Iaim to keep the supply chain as in house as possible in order to mitigate potential deviences. Atthe infancy stages, most of the sourcing will be attended to by myself and a few other trustedemployees, furthermore the use of online services alleviates much of the sourcing costs. Aprimary focus will be for cheaper non-branded goods to be purchased through charity shops,with average purchase pricing starting at £2.08 per menswear item and £2 for womenswear items(Charity retail org, 2020). Higher prices will be paid for branded goods sourced online. Asdemand picks up a form of economies of scale, by bulk buying of materials through dedicatedsuppliers, may be an option to obtain a consistent supply of clothing at low prices.When focusing on packaging, a model by Bloch in Mugge et al (2014) found it had both acognitive response (e.g product beliefs) and affective responses (e.g positive or negativeemotions) that resulted in a behavioural response. Based on this, I will make my packaging frompremium materials, displaying large amounts of branding, in order to maximise positiveresponses. Furthermore, a study by Magnier and Crié (2015) concluded that ecological cuesdisplayed on packaging can draw on intrinsic attributes of the product and packaging. As
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