Marketing Intelligence Report: Topshop Market Research Analysis

This report provides a comprehensive marketing intelligence analysis of Topshop, a prominent British fashion retailer. It begins by outlining the consumer decision-making process and the importance of understanding buyer behavior, including cultural and environmental influences. The report then delves into factors affecting buyer behavior, such as personal, social, and psychological aspects. It explores the relationships between brand loyalty, corporate image, and repeat purchases, highlighting Topshop's strategies. The analysis further covers market research techniques, including quantitative research, and sources of secondary data. The report includes a market research plan, an assessment of the UK fashion industry's size and trends, and a competitor analysis of Topshop. It also examines opportunities and threats for Topshop's new shoe line and presents techniques for assessing customer response, along with a sample questionnaire and a review of the survey's success. The report concludes with a synthesis of findings and recommendations for Topshop's marketing strategies.

Marketing Intelligence
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
Q.1 Main stages of consumer decision making process .............................................................3
Q.2 Importance of understanding buyer behaviour ....................................................................4
Q.3 Factors affecting buyer behaviour ........................................................................................4
Q.4 Relationship between brand loyalty, corporate image and repeat purchase ........................5
Q.5 Market research technique ...................................................................................................6
Q.6 Sources of secondary data to achieve marketing objectives ...............................................7
Task Two ........................................................................................................................................7
Q.7 Market research plan ............................................................................................................7
Q.8 Assessment of size and trend in fashion industry of UK .....................................................8
Q. 9 Competitors analysis of Topshop.........................................................................................9
Q.10 Opportunities and threats for Topshop for new shoe..........................................................9
Q.11 Two techniques of assessing customer response..............................................................10
Q.12 Questionnaire...................................................................................................................11
Q.13 Review of the success of survey ......................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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INTRODUCTION
In present scenario, marketing plays a very important role in the growth and success of
organization. Further it is a process in which businesses try to promote and advertise their
products and services in the market. The present report demonstrates some of the important
aspects of marketing intelligence. It is based on Topshop which is a British multinational fashion
retailer. Along with this, it explains the main stages of customer decision making process. This
report also reflects theories of buyer behaviours can assist the organization in understanding the
behaviour of people in market.
Q.1 Main stages of consumer decision making process
Topshop is one of the most renowned fashion brands in UK and to manage and maintain
its current market position, it needs to understand the stages of consumer decision making
process (Han, Lerner and Keltner, 2007). Further, it is described as a process or series of steps
which consumer performs before making any kind of purchase. The stages are mentioned below
as:  Need recognition- The stag of need recognition is considered as the first and one of the
most important stage of the entire decision making process. In addition to this, without
need there cannot be any kind of purchase (Darley, Blankson and Luethge, 2010).
Topshop can create need in the minds of customers with the help of marketing and
advertisement of its products and services. Information search- An individual starts searching for various kinds of information so
that he/she can identify the alternative through which the needs can be satisfied. Further
consumer uses various media ways such as print, media and online in order to search for
the information. Evaluation of alternatives- This is the stage in which customer starts evaluating all those
alternatives which has been identified in the process of information search (Xu and et.
al., 2011). This process is considered as a very important decision as in this a person try
to identify which alternative will be going to best satisfy his/her needs. Purchase decision- After evaluating all the alternatives available, the consumer makes
decision of purchase by selecting the best among all alternatives (Solomon and et. al.,
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2014). Topshop needs to care of the fact that it provides quality of shopping experience
and have a good return policy in order to influence customers and make them purchase
the products offered by the brand.
 Post purchase behaviour- This is the last steps in the buying behaviours process in
which a customer determine whether the product or service purchase has fully satisfied
his/her needs or not. For a brand like Topshop it is a very important stage as if the
customer is satisfied then he will make repurchase which is very good for the brand.
Q.2 Importance of understanding buyer behaviour
Buyer behaviour is defined as the sum total of intentions, preferences, attitudes and
decision of a consumer at the time of purchasing a product or service (Chen and Barnes, 2007).
In simpler terms, it can be defined as the way in which people behave at the time of buying a
thing (Khan, 2007). For example what to buy, from where to buy, when to buy and what amount
to be spend n buying. For a brand like Topshop, understanding buyer behaviours is very
essential in order to grow and survive at marketplace. It helps organization to identify the
behaviour of people and then deliver products according to the same. The two theory of buyer
behaviour are explained below as: Cultural theory of buying behaviour- Culture of any individuals has a great impact on
his/her decision making process. Further culture is determined as set of beliefs and values
which an individual learn from society or community (Solomon, Russell-Bennett and
Previte, 2012). This theory depicts that culture has strong influence over buyer behaviour.
 Environmental theory of buyer behaviour- According to this theory, the environment also
has an impact on the process and behaviour of buyer. Further it depicts that buying
behaviour is entirely depend on situation in which the individual is (Meyer-Waarden,
2008). For example an individual will compare the price of Juice at the time of making
purchase through supermarket but after a tired day in office he won”t compare the price
and grab the bottle of juice even if the price is high. Therefore, it can be stated that
environment also plays very important role at the time of determining buyer behaviour.
A person may be carving to eat peanuts but if he wants to impress a friend then he/she
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won’t buy the same (Khan, 2007). Thus, a person makes decision whether to purchase a
particular product or service on the basis of the environment in which he/she is living.
Q.3 Factors affecting buyer behaviour
It is very essential for Topshop to become aware about the factors which affects buyer
behaviour. Customers are treated as king of every business and all the efforts of companies are
targeted towards accomplishment of one particular goal which is customer satisfaction. The three
major factors which affect the behaviour of consumer are mentioned below as: Personal factors- The personal factors includes variable such as occupation, economic
conditions and lifestyle of an individual. Most of the time a person buys products and
services on the basis of his/her personal factors (Cretu and Brodie, 2007). For example an
individual will not buy premium products if his economic condition is not good. On the
other hand, if a person's lifestyle is very high then he/she will not prefer to buy cheap
products or low price products. It can be also stated that the nature of an individual’s jobs
is the one which influences the brands and products he/ she purchase. This means that a
farmer will not be conscious towards brands at the time of buying product. At the time of
buying clothes CEO of a business enterprise will look for more professional and elegant
clothes whereas for a store operators jeans and T-shirt is also cool (Masson and et. al.,
2007). On the other side of this, the age of a person also makes impact on his decision
making process. For example a young and single person be more willing to buy products
such as insurance policies, home, car etc, Social factors- The social factors also affect the buying behaviour of a person to some
extent. The major components of social factors are reference groups, roles and status and
family of a person. Reference groups contribute significantly in the development of
behaviour and attitude of a person (Martenson, 2007). In case of tangible products the
influence of such group on buying decision is very high. On the other hand, the role
person in the family such as child, husband, wife etc. also has an effect on buying
behaviour. Majority of the time people seek advice from their friends and family
members before buying any kind of products or services. Buying behaviour also depends
on the kind of role a person has in society (Meyer-Waarden, 2008). This means if a
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person is working as a manager and he is also a father and husband of someone then his
entire process of buying behaviour will depend on these three roles.
 Psychological factors- Psychological factors such as motivation, perception, beliefs and
attitude also affect the behaviour of consumer. Majority of the time a person buy products
and services on the basis of his/her perception regrading the same (Chumpitaz Caceres
and Paparoidamis, 2007). Other than this, the attitude and belief of people are also
important factors. For example it may happen that even if a product is very good and is of
high quality, an individual do not buy it because of his belief. Motivation will drive a
person to develop his/her purchase behaviour. This is the only reason by brands always
try to motivate and encourage people to buy their products with the help of promotion
and effective advertisements (Oly Ndubisi, 2007). Perception of a person also helps him
to determine whether he should buy products or not. A person won’t buy products which
he thinks of cheap quality and harmful for health.
Q.4 Relationship between brand loyalty, corporate image and repeat purchase
On the basis of case study it can be stated that there is a direct relation between brand
loyalty, corporate image and repeat purchase (Pühringer and Taylor, 2008). Brand loyalty can be
defined as the tendency of individual to continue buying products and services of a particular
brand over other marker players (Mohd Yasin and et. al., 2007). On the other hand, corporate
image is defined as the view and opinions of people in market about a brand. Repeat purchase is
a process in which consumer continues making purchase form a particular brand, irrespective of
what other market players are offering. From the provided case it has been observed that
Topshop has always taken care of its corporate image at market place. Rather than focusing on
the need and demand of one particular market segment, it has focused on satisfying the need of
various market segments. The biggest example of this is introduction of Topman and Top girl in
the year 1982. Further, achievement such as cool brand leader in the year 2002 and 2001 have
helped the brand to develop a distinctive corporate image. It is only because of corporate image
that the people in market are encouraged to buy the products offered by Topshop. In addition to
this, by offering latest design every week, it encourages brand loyalty form customers which
further leads to repurchase. A person cannot be stay loyal if he/she is dissatisfied with the
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products. By offering quality and latest design, Topshop makes the customer loyal towards the
brand and gives them a clear reason regarding why they should prefer and buy products of
Topshop over its competitors. High corporate image leads to brand loyalty which further result in
repurchase.
Q.5 Market research technique
Market research is defined as the process in which a person or company collect
information regrading the need, demean, taste and preference of people in the market (Oly
Ndubisi, 2007). For a business like Topshop market research plays very important role in growth
and success. Every organization is required to have information regarding the need and demand
of customers in market. If the organization is offering products which are not in demand then it
won’t be able to survive for long time period. To stay competitive and achieve high degree of
customer satisfaction it is very essential for organization to carry out adequate market research.
Along with this, it also helps firms to ensure the success of their marketing campaigns and
increase sales (Chen and Barnes, 2007). Market research assists in designing the most effective
marketing campaigns by having a direct impact on their minds. It also supports in getting
competitive advantages as it makes an organization aware of the strategies and tools which its
rival is using. The different techniques of market research which can be used by Topshop are
mentioned below as:
 Quantitative research technique- Topshop can use the quantitative technique of market
research to become aware about the need and demand of people in market (Solomon and
et. al., 2014). Further in this technique the brand will be required to gather information
from large sample group. Extensive surveys can be conducted for these aspects.
 Qualitative techniques- Topshop can also use qualitative technique of market research to
gather data regarding its customers. In this technique the brand will be required to
determine a specific group of people which is also termed as focus group (Meyer-
Waarden, 2008). The data will be collected from this group and will be further analysed
to understand current need and demand of customers.
 Secondary research- Topshop can also use techniques such as secondary market research.
The brand can take various books, journals and online sources into consideration which
provides information about the current demand of people in market. One of the main
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reason behind adopting secondary sources is that it will contains data and information
which has been already collected by someone else. This will help researcher to developed
in-depth knowledge with regards to the topic under investigations. Other than this, getting
data from secondary sources is less costly and time consuming as compared to data
collection from primary sources. With the help of assessing research which has been
already conducted by someone else, the scholar will be able to accomplish this study in
best possible manner.
Q.6 Sources of secondary data to achieve marketing objectives
Secondary data is termed as the data or information which has been already collect and
used by someone else. The two market research objectives are stated below as:
 To increase the sales of Topshop UK by 10% in the next one year
 To expand the market share by opening 12 new stores in next six months.
The fashion retail industry of UK is growing with a very good pace which means that
there are enormous opportunities for businesses to develop. The household consumption of UK
on clothing and footwear is £59 billion which is quite significant. The value of fashion industry
has been increased from £21 billion in 2009 to £26 billion in 2014 (Facts and figures about
fashion industry, 2015). UK is also considered as the centre of manufacture and designing the
best and high quality of fabrics all over the world (UK to the world, 2015). All the facts and
figures mean that there is a wide range of opportunities for Topshop to increase its sales and
expand its operations. The limitations of the market research findings are that appropriate data
regarding the changing need and demand of customer is not available. Therefore, the researcher
will have a lot of difficulty finding the frequent changes in the customers' need and preferences.
Other than this it can be also stated that in this industry wide number of customers are present
and the need differs from one person to another. On the other hand the findings are valid because
no misinterpretation of information has been done. The data has been collected only from those
sources which have been published after the year 2005. Other than this online information that is
published after 2013 has been taken into consideration. The information has been collected from
reliable sources which mean the market research findings are reliable. Only authentic sources
and relevant information from those sources have been used in the present study. In addition to
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this, researcher was also very careful at the time of data collection and presentation which has
enhanced the overall validity of research. In addition to this, chances of getting inconsistency and
dissimilarity have also been avoided at the time of collecting data from different secondary
sources. The work of renowned and popular researcher is only taken into consideration in order
to maintain the reliability and validity.
TASK TWO
Q.7 Market research plan
The plan for market research is mentioned below as:
Background
The fashion and retail industry is growing with a very good pace and is providing
potential opportunities for businesses to grow and develop. In order to gain competitive
advantage over other market players organizations are required to understand and deliver
products according to the need and demand of people in market.
Rationale
One of the main reasons behind carrying out this research is to identify the need and
demand of customers in fashion industry. Further it will also helps in determine the degree of
Topshop's customer satisfaction. The findings will assist clothing retailers of UK to grow and
increase their sales and profitability.
Objectives
 To identify the need and demand of customers in fashion industry To assess the degree of Topshop's customer satisfaction.
Methodologies
In order to carry out the research, inductive approach will be used and the research
philosophy that will be used is interpretivism. Descriptive research design will be employed in
order to obtain appropriate findings of the study.
Data analysis
The information collected will be analysed with the help of qualitative techniques in
which various themes will be developed to analyse the data.
Time frame
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Activities 1st
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
week
10th
Week
Drafting the
proposal of
research
Determining
the aim and
objectives of
study
Literature
review
Defining the
method to
collect
information
Defining
Research
Methodology
Collecting
primary and
secondary
information
Deriving the
findings
Data analysis
and
discussion
Conclusion
and
recommendat
ions
Final
Submission
Budget
In order to carry out this research, a budget of £200 has been allowed. The budget will be
spending of activities such as data collection and data analysis.
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Q.8 Assessment of size and trend in fashion industry of UK
The market is size of fashion industry of UK is very big and it has potential number of
customers. The market has various buyers such as men, women, children and infarcts. The
clothing and accessories needs of all the above mentioned buyers are satisfied by clothing
fashion industry. Further the size of UK fashion industry is £9.9 billion (Bhardwaj and Fairhurst,
2010). The choice and demand of people is changing with a very rapid pace as there are various
designers in the industry which provides different clothing lines to the customers. The industry is
growing with a rate of 1.3% every year which is appreciable and the value of fashion industry is
£26 billion (Masson and et. al., 2007). On the other hands, there are around 11,000 businesses
that are current operating in this industry. The market will be clothing retailers of UK which is
growing with a very good pace. It can also be stated that the industry has helped country in
becoming the third largest employer in all across the Europe. Further, UK is at the third position
behind Italy and Germany. Industry has employed more than 8, 16,000 people and has helped a
lot in lowering down the rate of unemployment in the country. It has emerged as one of the most
creative and vibrant industry of country and it is contributing a lot in the overall economic
development of UK. In addition to this, it contributes around £20.9 Billion in the overall GDP of
nation. Marketing, fashion media and fashion educators are the three biggest contributors among
them. As per the market trends, engagement retails remains on the priority of fashion retailer.
Along with this, the trends of exhibitions for sales are also increasing at a fast pace.
Q. 9 Competitors analysis of Topshop
The key competitors of Topshop are Primark and H&M as all these brands have few
things common. The targeted audience or customer’s base of all the above three brands in terms
of age and style is same. In addition to this, the three brands are major market players in the
women apparel clothing. In order to gain competitive advantage over each other, the brand uses
different ways of marketing and advertisement of their products (Solomon, Russell-Bennett and
Previte, 2012). The use of social media such as Facebook, Twitter and Instagram is very high for
Topshop as compared to its major competitors. Along with this, Topshop interacts with its
customers with the help of social media. On the other hand, H&M uses social media as tools to
market its clothes rather than using it to interact with customers. Primark do not use any kind of
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social media platform to market and promote their products and services. Further it promotes it
future products with the help of its own official website. Strategic group is defined as a model
which helps in groping the companies which have similar customers base and works on almost
same business model. The group in which Topshop falls consist of brand such as Primark and
H&M. In addition to this, both the brands are considered as the biggest rivals and competitors of
Topshop. Huge amount of human and financial resources are invested by these brands to attract
more customers. Therefore, it can be stated that the brand needs to develop more effective
strategies in order to retain all its customers (Solomon, Russell-Bennett and Previte, 2012). Both
competitors are trying to expand their market share and customer base which has become a threat
for Topshop.
Q.10 Opportunities and threats for Topshop for new shoe
The UK fashion market is a growing market and it is making a significant contribution in
the economic development of the country. Further it is providing its contribution in terms of
employment and gross added value (Pühringer and Taylor, 2008). The fashion industry of UK is
also termed as one of the leading fashion retailer industry in the world. The opportunities and
threats for Topshop's new shoe are mentioned below as: Opportunities- The emerging market of UK is one of the biggest opportunities in front of
Topshop as there are potential opportunities for growth and development. Topshop is
already a well established brand in the market of UK and thus, it won’t have any kind of
difficulty in attracting customers for its new shoe. Another opportunity which lies in front
of Topshop is that it believes in innovations which mean that its research and
development team is very strong (Han Lerner and Keltner, 2007). The brand also has an
opportunity to expand itself in new and potential markets of the world. This will provide
Topshop with new customers, sales and market shares. Along with this, the brand has
opportunities such as mergers and acquisitions with other organization in other markets
around the globe.
 Threats- The biggest threat for the brand in UK is the level of competition which is very
intense. It has been found that the market has been already captured by some of the major
market players. Along with this, the market conditions are highly volatile which also big
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threat to the brand is. The power of customers is very high as there is various kinds of
brands available in this market. Therefore, high power of customers is one of the major
which Topshop is facing (Martenson, 2007). Along with this, the supplier power is also
high which a threat to organization. Suppliers have the power to control prices of
Topshop products.
Q.11 Two techniques of assessing customer response
The process of customer’s response includes collection of information from customers
regarding their shopping experience and taking suggestions for improvement. Customers
response helps organizations to enhance the quality of their product and services (Xu and et.al.,
2011). The two techniques of assessing customer response is mentioned below as:
 Home customer survey- The technique of home customer survey can be used to become
aware about the need and demand of customers. Further it can be in the form of email
surveys, take home surveys which can be attaches with the receipt or bill of customers. Customer service questionnaire- Technique of customer service questionnaire can be also
used to assess the response of customers (Darley Blankson and Luethge, 2010). With the
help of questionnaire the customer can be asked questions regarding their overall
shopping experience, any complains and satisfaction level after using the product.
Evaluation of the techniques
After evaluating both the techniques, it can be stated that home customer survey can is
more effective in order to assess information from small customer base. It can provide with up to
date feedback and it is not difficult to use this technique. On the other hand, Customer service
questionnaire can be used to assess information from larger customer base. It is a more effective
technique as compared to the home customer survey as it can provide with accurate information
within a short period of time.
Techniques Advantages Disadvantages Constrains
Home customer
survey
Benchmark results Privacy issues Customer may
consider it as a waste
of time
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Customer service
questionnaire
Practical way Respondents can lie Not easy to frame a
appropriate
questionnaire
Q.12 Questionnaire
Name__________
Gender
 Male
 Female
Age
 Below 25
 25-35
 35-45
 45 Above
1. How satisfied or dissatisfied are you with the range of shoe of Topshop?
 Very satisfied
 Somewhat satisfied
 Neither satisfied non dissatisfied
 Somewhat dissatisfied
 Very dissatisfied
2. Which of the following word will you use to describe our shoe?
 Unique
 reliable
 Value for money
 overpriced
 Poor quality
 Other than this
3. Our new products have met your needs?
 Yes
 NO
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4. The quality of shoe is satisfactory
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
5. The sales person has addressed all your queries and concern related to the shoe in effective
manner?
 Yes
 No
6. How satisfied or dissatisfied are you with the price of the shoe?
 Very satisfied
 Somewhat satisfied
 Neither satisfied non dissatisfied
 Somewhat dissatisfied
 Very dissatisfied
7. How long have you been the customer of Topshop
 First purchase
 Less than six months
 Between six months to a year
 More than one year
8. Will you suggest new shoes of Topshop to your friends and family
 Yes
 No
9. Your shopping experience was quite good
 Strongly agree
 Agree
 Neutral
 Disagree
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 Strongly disagreeKhan, M., 2007
10. The product is different from the other brands in the market
 Yes
 No
11. Do you want any improvements in existing product? If yes then please mention below
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
12. Your suggestions regarding improvement
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Q.13 Review of the success of survey
The main objective behind carrying out this survey was to identify the level to customer
satisfaction regarding the new shoe of Topshop. The survey was a huge success as the response
was more than what it was expected. The total number of respondents was 100 and it was
expected that 70% of them will provide results but in actual terms 83 people have provided their
response. The survey was effective as rather than only focusing on the new show it has taken
other aspects of customer satisfaction into consideration. The objective of this survey was to
identify whether people are satisfied with the new shoe of Topshop or not. The objectives have
been achieved as the results of survey clearly highlight that people are satisfied with the new
product of the brand. By carrying out survey, brand has been able to become aware of the fact
that most of the people are satisfied with the products and services. Along with this, it has been
also identified that there are some changes required in design and prices to the shoes in order to
gain high degree of customer satisfaction. On the other side of this, customers are happy with the
overall product quality of Topshop.
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CONCLUSION
From the above report it can be concluded that understanding buyer behaviours is very
essential for the success of business. Along with this, it can be also evaluated that the fashion
industry of UK is very potential and growing with a very good pace. It can be concluded that the
major competitors of Topshop includes H&M and Primark.
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