Jeanswest Marketing Report: Target Market, Strategy, and Analysis

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This report provides a comprehensive analysis of Jeanswest, an Australian-based fashion clothing organization. It delves into the company's background, product descriptions (focusing on denim jeans), and target market segmentation, primarily demographic and behavioral. The report examines Jeanswest's marketing strategies, including its marketing objectives, competitive landscape, and the application of the marketing mix (product, price, place, and promotion). It explores Jeanswest's approach to product development, pricing strategies, distribution channels, and promotional activities, including social media and brand loyalty programs. The report concludes with recommendations for improvement, such as refining the target market through psychographic segmentation, implementing a more affordable pricing strategy, and enhancing social media marketing efforts. This analysis aims to provide insights into Jeanswest's market position and suggest avenues for growth and enhanced customer engagement.
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Running head: MARKETING & ENTREPRENEURSHIP
Marketing & Entrepreneurship
Student’s Name:
Name of University:
Author’s note:
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Table of Contents
Introduction......................................................................................................................................3
II. Target Market..............................................................................................................................4
III. Marketing strategy.....................................................................................................................5
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10
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Introduction
All the profit-making organisations set up marketing plan as it helps an organisation to
generate greater revenue. An organisation’s strategy combines with all marketing objectives that
may lead to one comprehensive plan. In order to set marketing strategy, an organisation needs to
marketing research. Marketing strategy should focus target market of an organisation. Each of
the company has its own distinct target market. This report focuses on the Australian based
fashion clothing organisation Jeanswest. In the first part of the report, concept of the target
market will be discussed with analyzing the selected target market of Jeanswest. In the latter
part, marketing strategy of Jeanswest will be analysed through theoretical standpoint. Lastly,
recommendations will be given based on the analysis.
I. Jeanswest Company background and product description
Jeanswest is an Australia based apparel organisation which as chain stores all over
Australia and this organisation is operated under Glorious Sun. Jeanswest operates mainly on
casual fashion clothing, jeans, denim, men’s clothing and women’s clothing. The organisation is
famous for collection of blue denim both females and males. Jeanswest has its distinct division
for maternity wears for women. Jeanswear organisation has more than 218 stores in all over
Australia and New Zealand. In addition, Jeanswest started its journey in the year 1972 when it
established its first store in Perth (Jeanswest.com.au. 2017). In the first occasion, this
organisation started its business in Western Australia. Glorious Sun made the acquisition of the
organisation in the year 1994. However, it has Jeanswest Australia store in Mauritius and in the
Middle East.
Jeanswest is famous for women denim jeans. This organisation has complete range of
women denim and it is famous within the age range between 13 and 40. Blue denim is their best
selling product under the category of women section. This organisation has its online store and
customers can select their products through images with having various sizes and colour. The
indigo denim for women of Jeanswest sells most in Australia for women. The denim looks like
the sturdy cotton textile through which the weft in jeans passes under warp threads. The
organisation sells the product of women jeans using tag line of ‘Fits Best’. The division of
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women denim ranges vastly, named, high wasted skinny, distressed cop, patched slim and
straight jeans.
II. Target Market
In order to set a target market of an organisation, it is needed to segregate the market
segmentation. Market segmentation can be categorised into four bases. The first one is
geographic segmentation and it is based on customers’ location, region, rural-urban division and
classification of customers. As stated by Baker (2014), demographic segmentation is based on
age, gender, occupation, socioeconomic group. Behavioural segmentation of customers is based
on rate of usage of products, benefits, loyalty status and readiness to buy a product from the
organisation's store. Lastly, psychographic segmentation is about personal preferences, lifestyles
of customers, class and attitudes of the customers.
In this regard, segmentation of Jeanswest makes its market segmentation. This
organisation follows the segments of demographic and behavioural bases. In demographic bases,
the organisation mainly focuses on ages of the customers. In fashion clothing industry, teenagers
and Middle Ages customers opt to choose new fashion clothes. In addition, as these products are
costly according to market price, Jeanswest chooses higher earning class. Jeanswest organisation
chooses both males and females as their segments of choices as both genders wear denim jeans.
Moreover, in behavioural segment, the organisation focuses on loyalty of the customers.
Jeanswest has a great customer base in Australia and they started ‘Frequent Flyer' loyalty
programme for the customers. This loyalty programme provides great rebate and deals to the
selected customers.
Therefore, the selected target market of the organisation is teenage section and middle
aged individuals in denim jeans. Target market of Jeanswest is mainly upper-class people of
Australia as the denim is costly. Blued denim has great demand and mainly women shop
regularly from stores all over Australia and these denim jeans cost for women from $99 to $199.
Target customers of Jeanswest have ‘repeat purchasing’ value as this organisation provides
loyalty bonus and the customers are ready to purchase new arrivals always. Moreover, the
organisation launched Butt Cam jeans for women stating that these jeans have lifetime guarantee
with recognition to the valued customers giving discounts up to 15%.
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Figure 1: STP model analysis of Jeanswest organisation
(Source: Self-developed)
In positioning of the products, the organisation selects the stores and it has more than 190
stores in Australia and other stores in New Zealand, China and the Middle East. Most of the
stores are in an urban section and these are near metropolitan cities. However, Jeanswest has
online stores and people all across Australia can shop from this having discounts. As stated by
Weinstein and Cahill, (2014), in case of value proposition, the organisation focuses on
fashionable clothing that can afford most of section of target market. Jeanswest strategy to
retrain target market is to provide cutting edge fashion and that must have latest styles for
women. In addition, in retaining customers, Jeanswest gives large choices to the target customers
from which they can choose their clothes. Moreover, organisation reduces manufacture quantity
of each product that creates artificial scarcity in the market and target customers start purchasing
the products from time it hits the market.
III. Marketing strategy
Marketing objectives of the organisation Jeanswest are:
To increase customer satisfaction
To continue to grow by extending Jeanswest fashion brand globally
To extend market share by 5% by the end of 2018
To increase brand awareness among consumers and profitability
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Jeanswest organisation focuses mainly on the brand loyalty of the organisation and
setting a target market with middle ages and teenagers. Jeanswest organisation brings the latest
design in world and the customers have the best fabric and blue denim. Marketing of Jeanswest
is based on the position in the market. Jeanswest organisation has competitors in the Australia,
the competition in market are, David Jones, Myer, Pop-up retail, Country Road and Cue.
Jeanswest needs to have a good marketing strategy in order to cope up in market. Philip Kotler
stated that marketing mix is a combination that should be controlled by the organisation to
motivate customers to buy products. Marketing Mix of Jeanswest:
Products:
As commented by Hennart (2014), products of an organisation can be both tangible and
intangible. All the products of an organisation must have product life cycles. Organisation’s
marketing team should know the unique selling proposition and benefits that products offered.
Jeanswest organisation is a fashion brand that makes apparel for both male and females.
Jeanswest organisation sells best apparel in market of Australia and their blue denim jeans are
famous. Moreover, the organisation has great range of female jeans and blue denim have a great
customer base. In addition, this organisation has brought a range of maternity jeans for women
with large waist size. Jeanswest organisation researches the market according to the needs and
desires of the customers. Their products suit the Australian weather and culture and college
going girls and middle aged women largely buy their products. Jeanswest has brought long
straight jeans for Middle East women and they have bought Icon jeans for men. It makes clear
that variety and quality both are important for Jeanswest.
Price:
Price is all about the amount that the end users have to pay for a product. Pricing has
perceived value of a product rather than the objective cost (Poon et al. 2017). An organisation
must have a pricing strategy before sells a product and it must achieve the revenue target of the
organisation. Jeanswest organisation takes higher-pricing strategy as price is higher than the
local market. It makes a sense that organisation sells quality product to the customers with global
name. The other brands with affordable clothing are competitors of Jeanswest. Jeanswest’s price
strategy can be called price skimming as the organisation charges highest price and the
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customers need to pay the price initially. In this way, the demands of products get satisfied,
Jeanswest lowers the price in the more-price sensitive segment. Customers of Jeanswest are
mainly fashion conscious and they are from upper-income group millennial. In female jeans
products, the ranges of product in pricing are various and customers can choose among various
price range. As stated by Bharadwaj (2015), the customers provide values to product pricing. In
this way, if values are positive, then the products will be a ‘hit’ in the market. In recognising the
perceived value of a product, Jeanswest can make a survey in the market through social media.
Place:
As opined by Lueg et al. (2015), place is related to concept of where the customers can
get the products. In making choice about place, the organisation needs to set the distribution
channel. The place strategy of products to the stores plays a vital role. David Jones, the rival in
the market of Jeanswest sends the new products in the stores within 30 days of the launching and
this strategy sells the products more. Accessing products in large quantity and proper place is
needed by customers. In Australia, Jeanswest organisation has more than 190 shops and online
presence. However, the organisation is trying to expand the online stores and it would enable the
organisation to reach a large number of customers. All stores of the organisation are near large
city; customers can check new design through online and buy them in the stores.
Promotions:
Promotion is the market communication strategy to the target customers, in this respect;
the organisations select the promotional activities. These strategies include social media
advertisements, television advertisements and hoardings. Promotions increase public relation to
organisation and increase brand value (Brito et al. 2105). The promotion makes the connection to
organisation and end-users. In entire marketing function, promotion is the communication aspect.
In selling their new denim or designer clothing, Jeanswest organisation does not make aggressive
advertisements. Jeanswest uses word-of-mouth public relation. Jeanswest tries to make
customers happy as the organisation sells best quality products. The distribution and pricing
strategy of the organisation play an important role in promotion. Sometimes, the Jeanswest
organises fashion week to promote their newly launched ranges of products. This increases brand
popularity. Moreover, in a social network, the organisation has strong presence. Jeanswest
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engages the customers in social media and they make loyalty programme. In making
advertisement campaign, the organisations can arrange promotional partners and in fashion retail
industry, power of partnership is very important (McAlexander et al. 2016). Most importantly,
Jeanswest organisation focuses on the ethical sourcing in production of jeans and denim. The
organisation follows standard code of conducts in manufacturing the products with signing the
cotton pledge on the website of the organisation.
Figure 2: Marketing Mix of Jeanswest
(Source: Self-developed)
Recommendations
Jeanswest organisation is not in the industry and it has several competitors in the market.
However, this organisation is trying to make its foothold as a global organisation. Jeanswest
organisation follows vertical integration in merchandising the products in the Australian market.
However, in marketing the products and correcting the target market, some of the
recommendations as follow:
a. Select psychographic target:
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Jeanswest organisation can target through interested fashion trends of the customers. Of
late, customers are getting more fashion conscious; Jeanswest organisation can target the
customers who are conscious about their looks. The people who like to shop and socialise can be
new target customers.
b. Improved pricing strategy:
Jeanswest organisation takes price skimming strategy; however, affordable pricing
strategy would help the organisation to penetrate to middle-class people. Reaching a large
number of consumers will eventually increase the sales. EDLP (Everyday Low Price) strategy
will increase customer base
c. Better social media marketing:
Social media marketing is not strong of the organisation; however, it has social
networking pages on Facebook, Twitter, Instagram and You Tube. Jeanswest has 1,33,000
(approx) likes on Facebook. Social media marketing is cost-effective and can reach the
customers easily with attractive images and contents. Jeanswest organisation needs to take social
media strategy effectively with community support programmes that will enhance their CSR.
Conclusion
Jeanswest organisation is one of the largest fashion retail organisations that sell mostly
luxury denim jeans. Jeanswest’s target markets are selective and the organisation needs to
flourish it. The organisation needs to alter the pricing strategy in order to reach large market
segment. Visual branding is now important, Jeanswest organisation can start digital marketing
through social media and best quality images must be posted there. In a country like Australia,
fashion retail and apparel industry have scope to flourish and Jeanswest organisation with
focusing mainly demand of the consumers rather than competition.
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Reference List
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Baker, M.J., 2014. Marketing strategy and management. London: Palgrave Macmillan.
Bharadwaj, S., 2015. Developing new marketing strategy theory: addressing the limitations of a
singular focus on firm financial performance. AMS review, 5(3-4), pp.98-102.
Brito, P.Q., Soares, C., Almeida, S., Montes, A. and Byvoet, M., 2015. Customer segmentation
in a large database of an online customized fashion business. Robotics and Computer-Integrated
Manufacturing, 36, pp.93-100.
Hennart, J.F., 2014. The accidental internationalists: a theory of born globals. Entrepreneurship
Theory and Practice, 38(1), pp.117-135.
Jeanswest.com.au. 2017. Our History. Available at: http://www.jeanswest.com.au/en-au/about-
us/history.htm [Accessed on: 29 Aug. 2017]
Lueg, R., Pedersen, M.M. and Clemmensen, S.N., 2015. The role of corporate sustainability in a
low‐cost business model–A case study in the Scandinavian fashion industry. Business Strategy
and the Environment, 24(5), pp.344-359.
McAlexander, J.H., Koenig, H.F. and DuFault, B., 2016. Millennials and Boomers: increasing
alumni affinity and intent to give by target market segmentation. International Journal of
Nonprofit and Voluntary Sector Marketing, 21(2), pp.82-95.
Mohr, I., 2013. The impact of social media on the fashion industry. The Journal of Applied
Business and Economics, 15(2), p.17.
Poon, E.W.N.J., Lam, S.S. and Moon, K.K., 2017. Design and Development of Intelligent
Decision Support Prototype System for Social Media Competitive Analysis in Fashion
Industry. Fashion and Textiles: Breakthroughs in Research and Practice: Breakthroughs in
Research and Practice, p.211.
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Posner, H., 2015. Marketing Fashion: Strategy, Branding and Promotion. Laurence King
Publishing.
Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Abingdon: Routledge.
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