Marketing Report: Chic By Choice - Competitive Analysis and Strategies

This report provides a comprehensive analysis of Chic By Choice, a company operating in the fashion rental industry. It begins with an application of Porter's Five Forces to assess the competitive environment, evaluating the bargaining power of suppliers and buyers, the threat of substitutes, competitive rivalry, and the threat of new entrants. The report then delves into the importance of innovation for Chic By Choice, emphasizing the need to stay current with fashion trends. It explores the application of segmentation, targeting, and positioning strategies, including geographic, demographic, socio-cultural, and hybrid segmentation approaches. The report also addresses the importance of identifying and targeting specific market segments based on demand and trends, as well as establishing a strong brand position. Finally, the report highlights the significance of mega trends within the fashion industry. The analysis draws on relevant academic sources to support its findings and recommendations.

MEGA TREND
MEGA TREND
Innovation comes from the regeneration of the idea to keep the operation, product and
service fresh. Chic By Choice deals in the current fashion trends they always have to
make the innovation and keep updated in the industry. Chic By Choice is the company
that always look for the innovative services that they can provide it to their client and
try to keep it affordable for most of the people. To come up with the innovation for the
company it is necessary to do the segmentation, targeting and positioning of the
product to make the innovation successful.
Segmentation- As all the consumers are different so the segmentation is being done
with the different sort of needs according to the market, for the Chick By Choice it is
essential to categorise the market are:
Geographic Segmentation- In this the company is being divided in the different
market location. Consumers are divided according to the locality having the same area
is being assumed to share the similar needs and the wants as per the trends but this is
not happened always (Gerrikagoitia and et.al., 2015).
Demographic Segmentation- This is being done when the market is being segmented
on the basis of age, gender, marital status, occupation, level of education and many
other factors that is being taken into the consideration. It is the most accessible and the
cost effective way to do the identification but it is not necessary that this will accurate
or the useful.
Socio- cultural segmentation- This division of market is being done by the use of
social cultural variables that includes family life cycle, social class as these factors
influence the need of the consumers and the market is being segmented on this basis
(Henninger, Alevizou and Oates, 2016).
Hybrid segmentation- In this approach the company use the multiple forms of the
segmentation in order to identify the segments properly that in which area what trend is
being required. This requires the strategies for the segmentation.
Targeting- As the company has to target the fashion trend of the locality by
considering the demand such as it is located near the college are they have to consider
the trends according to the adults at the same if they are having the school nearby in its
location than they have to maintain the trends according to children's. Target market is
one of the best matches of apparels provided by the company that helps in the
maximisation of efficiency and the effectiveness in the marketing. Small medium
business have to identify the target market (Gerrikagoitia and et.al., 2015).
Positioning- This will be considered as the strength and weakness of the organization
also consider the need of the consumers, market and position of the competitors. It is
the process to establish the image and do the identification of brand of product so the
customers can perceive in the certain way. Positioning must be the relevant as per the
customers that helps them in doing the purchase decision (Mason and et.al., 2015).
Strong positioning of brand enable that the store is having the credible and sustainable
position in the minds of customers. Positioning can be done according to the lifestyle,
problem solver, present branding and many other ways.
Chic By Choice they have to do the continuous improvement in their product by understanding the
need of market. For this porter's five forces are
Bargaining Power of Supplier- As the Chic By Choice deals in the fashion industry products and
give the cloths on rent so in this the supplier power is relatively small and insignificant in force.
This force analyse about how much of power a business supplier is having. Supplier plays on the
bargaining power by even threatening to raise the prices, or they may lower the quality.
Bargaining Power of Buyer-Bargaining power of the buyer in the apparel market is important to
identify the buyers. Women's having the standard body size purchasing the new retail apparel
considered as target buyers. As the buyers in this industry holds the strong position as they are
having high proportions of purchases in the industry. Through the price cut the bargaining power of
buyer in this industry is noticeable (Prothero and McDonagh, 2015).
Threats for Substitute- Demand of the product in the fashion industry is affected by the cost and
from its substitute available in the market. As in the market there are many other brands of cloths
giving the apparels on rent. This impact the relative cost of its substitute product goes down at the
same growth of the industry is negatively influenced. Substitute products are considered as the
threats to industry so it is important to maintain the customer loyalty.
Competitive Rivalry- As the rivalry competition is high in this as when there is just a few
businesses that equally sells the product and service even when the industry is growing and at the
same now the consumers can easily switch to its competitors that offers the little cost.
Threats for new entrants -The positioning of the existing firms will be stronger so there is the
barrier for them to enter in the market (Chen, Kazman and Matthes, 2015). So if the barrier to
entry is low than there must be having the high chance of threat to new entrants and it is vice versa.
Therefore, the barriers to entry is very important in determining the threat for the new entrants
References:
Chen, H.M., Kazman, R. and Matthes, F., 2015. Demystifying big data adoption: Beyond IT fashion and relative advantage. In Proceedings of Pre-ICIS (International Conference on Information
System) DIGIT workshop.
Gerrikagoitia, J.K., and et.al., 2015. New trends of Intelligent E-Marketing based on Web Mining for e-shops. Procedia-Social and Behavioral Sciences.175. pp.75-83.
Henninger, C.E., Alevizou, P.J. and Oates, C.J., 2016. What is sustainable fashion?. Journal of Fashion Marketing and Management: An International Journal.20(4). pp.400-416.
Prothero, A. and McDonagh, P., 2015. Introduction to the special issue: Sustainability as megatrend II. Journal of Macromarketing.35(1). pp.7-10.