Marketing Management Report: Excelsior Clothing Analysis

This marketing management report examines Excelsior Clothing's business operations within the New Zealand fashion market. It begins with an executive summary and table of contents, followed by an introduction outlining the competitive landscape and Excelsior's market position. The report conducts an industry analysis, assessing market value and growth projections. It then delves into external factors, including political, economic, social, technological, legal, and environmental influences. Customer analysis identifies target segments based on demographics and purchasing behaviors. A competitor analysis evaluates the competitive landscape. The report also identifies Excelsior's internal strengths and weaknesses. Based on the analysis, the report recommends steps to enhance Excelsior's long-term business performance, concluding with references.

Running head: MARKETING MANAGEMENT
Marketing management
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Executive summary
The aim of this report is to discuss about the major and relevant internal and external factors for
Excelsior clothing in their business operations. In addition, this report reviewed the external
factors for them along with identifying the trends of the target customer segments. The target
customers are also being identified on the basis of different segmentation variables. Competitor
analysis is also being done to identify the competitiveness of the major substitutes of Excelsior
clothing. On the other hand, the internal strengths and weaknesses of Excelsior clothing are also
being discussed. Based on the major factors identified, this report had recommended a few steps
that can help Excelsior clothing to enhance their business in the long term.

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Table of Contents
Introduction......................................................................................................................................3
Industry analysis..............................................................................................................................4
Determination of the external factors..............................................................................................4
Political factors............................................................................................................................4
Economical factors......................................................................................................................5
Social factors...............................................................................................................................5
Technological factors...................................................................................................................6
Legal factors................................................................................................................................7
Environmental factors..................................................................................................................7
Customer analysis............................................................................................................................8
Competitor analysis.........................................................................................................................9
Determination of the internal factors.............................................................................................10
Strengths....................................................................................................................................10
Weaknesses................................................................................................................................10
Opportunities.............................................................................................................................11
Threats.......................................................................................................................................11
Conclusion.....................................................................................................................................11
Recommendations..........................................................................................................................12
Reference.......................................................................................................................................13

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Introduction
Fashion line is one of the most potential as well as competitive business segments in the
current time due to the larger target segments and presence of different competitors. However,
with the opportunities of catering to different customer segments in line to the changes in the
market trends and preference patterns, firms competing in this sector are having huge potentiality
(Thibaut, Vos & Scheerder, 2014). New Zealand is a developed economy and is having greater
demand for higher end fashion items. It is identified that Excelsior clothing is one of the leading
brands operating in the fashion market of New Zealand. They are having diverse product
portfolio with ranging from higher end fashion and party wear to adventure wears. Thus, it is
helping them in catering to different customer segments and increasing the revenue streams. It is
identified that Excelsior clothing is selling their diverse products under the different brand names
such as great walking.
In the recent time, Excelsior clothing got succeeded in the market over their competitors
due to the fact of larger product varieties and market penetration. In addition, the outsourcing
process of manufacturing for Excelsior clothing is also helping in reducing the cost of production
and has more profitability in the long term. The business model being followed by Excelsior
clothing is bricks and clicks. This is due to the reason that they are having their presence in both
online and offline mediums (Uttam, 2013). This report will discuss about the relevant internal
and external factors being faced by Excelsior clothing along with determining the characteristics
of the targeted customers. Competitor analysis will also be done to review the competitive
scenario in the market. Based on the identified factors, a few recommended steps will be
discussed in this report.

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Industry analysis
It is reported that current market value of the fashion industry of New Zealand is standing
at US $ 43.6 billion. It is also estimated that the retail sector of New Zealand will witness the
minimum growth of 0.2 percent for the next five years. This denotes that Excelsior clothing is
going to have positive market situation in the coming years in operating in New Zealand
(Kanakaraj & Ramachandran, 2015). Moreover, it should also be noted that in the future, if
Excelsior clothing can enter in the foreign markets, then their opportunities will further get
increased. This is due to the reason that newer economies especially the developing economies
are having greater economic growth over other nations. However, on the other hand, it should
also be noted that fashion industry is highly vulnerable to the market forces due to the fact that
changes in the taste and preference pattern of the customers will affect the business opportunities
Excelsior clothing and other brands in this sector (Hwang & Choi, 2013). Thus, it is important
for the players operating in this sector to cope up with the change in order to stay competitive.
Determination of the external factors
Political factors
New Zealand is having favorable political environment in the country and this is
beneficial for the business entities to thrive. It is one of the most important factors for Excelsior
clothing in doing their business in New Zealand. The positive diplomatic ties between New
Zealand government and other countries will also help Excelsior clothing to tap the foreign
markets without much hindrance (Murray, 2017). It should also be noted that New Zealand is
having favorable score and ranking in terms of political risks and there are no instances of coup
or instability in the past. This denotes that Excelsior clothing is having favorable political

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scenario in doing their business in New Zealand. On the other hand, the changing of political
scenario after every five years will have different impacts on the business. This is in line to the
different ideologies of the political parties.
Economical factors
One of the major economical factors for Excelsior clothing in doing their business in
New Zealand is national growth. It is reported that currently New Zealand is growing at the rate
of 0.7 percent as of first half of 2019. This denotes that purchasing power of the customers in the
country is increasing with the national growth. Hence, the market potentiality for Excelsior
clothing is increasing. In addition, it should also be noted that pro business approaches of the
government including favorable tax rates are also beneficial for the business entities in doing
business in New Zealand (Gemmell, Kneller & Sanz, 2013). However, on the other hand, there
are few negative economical impacts will also be faced by Excelsior clothing in doing their
business. This includes the emergence of the economic recession. This will cause reduction in
the purchasing power of the customers. Hence, the market opportunities for them will get
reduced in the long term. Moreover, this emergence of more competition in the market will also
cause challenges for Excelsior clothing. This is due to the reason that more global brands are
entering the lucrative fashion market of New Zealand, which will reduce the potentiality for
Excelsior clothing to increase their revenue.
Social factors
New Zealand is a developed nation with having diverse population from different
cultures and ethnicities. Thus, demand for the diverse products of Excelsior clothing is having
demand in the market. In addition, the local customers of New Zealand are highly globalized in

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nature and thus it is beneficial for Excelsior clothing to follow standardized products in the
market. On the other hand, being a highly globalized society, the taste and preference patterns of
the customers are getting changed more rapidly and thus it is challenging for Excelsior clothing
to cope up with this change. It should also be noted that immigrants are one of major population
in New Zealand and it is important for Excelsior clothing to have the products in accordance to
this segment in order to cater to larger section of the market (Akbari & MacDonald, 2014).
Moreover, it is also important for Excelsior clothing to have the aesthetic value of their products.
This is due to the reason that adventure clothing should have the aesthetic value to have the
greater exposure and presence in the market. This will also help Excelsior clothing to enhance
the value proposition for their customers and gaining competitive advantages over their
competitors (Law, Genc & Bryant, 2013).
Technological factors
Technology plays an important role in the fashion segment in getting news designs and
styles along with reducing the cost of production. It is earlier stated that Excelsior clothing is
following outsourcing policy for their production process. In terms of the materials in the
clothing, technology also helps in getting the perfect blend. In the case of Excelsior clothing, it is
identified that they are following advanced technologies in developing the merino and alpaca
fibers for the adventure fashion clothing range (Vanderploeg, Lee & Mamp, 2017). On the other
hand, it should also be noted that Excelsior clothing is also facing the challenge in terms of rapid
change in the technological field. This is due to the reason that with the introduction of the fast
fashion, market trends are becoming more fluctuating and fierce. Therefore, it is getting
important for Excelsior clothing to invest more in developing their technologies in periodical
manner in order to stay ahead in the competition.

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Legal factors
There are number of legal factors that should be followed by Excelsior clothing in doing
their business effectively in New Zealand. One of the major legal factors is the taxation rates. It
is identified that GST was not implemented on the goods sold online but in the recent time, GST
is implemented on the online goods also. Thus, the end price of Excelsior clothing is getting
increased, which is affecting their marketing approaches (Macchion, Furlan & Vinelli, 2017).
Furthermore, it is also identified that legal complications will be emerged in terms of the product
quality also. This is due to the reason that New Zealand authorities are having certain standards
for importing of the customer goods, which should be followed by Excelsior clothing. In entering
in the foreign markets, these legal complications will be different for them.
Environmental factors
Excelsior clothing is facing lower intensity of environmental factors due to the reason
that they are not having own production facilities, rather it is being done by outsourcing. Thus,
pollution which is getting emerged from the production process of garments is not the liability of
Excelsior clothing. However, it should be noted that the materials being used in the garments
including the colors should not have adverse impacts on the environment or should not have
negative impacts on the human body (Sinha, Muthu & Dissanayake, 2016). This should be
ensured by Excelsior clothing from their outsourced partners. It is also important for Excelsior
clothing to ensure that they are following environment friendly supply chain in sourcing their
materials and all their suppliers are complying with the environmental standards.

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Customer analysis
In terms of the demographic variables, the target customers for Excelsior clothing are age
groups between 20 and 45. This is due to the reason that these age groups are capable to travel
the diversities of New Zealand including the international tourists. In addition, this age group is
having the major portion of the income generating people including the professionals and
businessmen (Miller, 2013). In terms of the genders, both the male and female customers will be
targeted, which will further increase the diversity of the products. In terms of income level, both
the upper and middle class customers will be targeted due to the reason that upper class
customers are having the purchasing power to travel to New Zealand and spend on fashion items.
On the other hand, in the recent time, it is noted that a huge chunk of middle class customers are
travelling to New Zealand especially from the Asian countries such as India and China (Brito et
al., 2015). It is reported that China is the largest country in terms of incoming tourists in New
Zealand. Thus the pricing of the products should be done in accordance to the purchasing power
of the middle class customers also.
This should be noted that Asian customers especially the Chinese travelers prefer quality
and price of the products over their aesthetic value. In addition, in the case of adventure clothing,
their buying pattern is purely based on utility rather than social value. However, the aesthetic
value of the products of Excelsior clothing will be the added elements in value proposition for
the target customers (Stathapoulou & Balabanis, 2016). In this case, the distribution strategy of
Excelsior clothing will also play an important role in gaining competitive advantages due to the
reason that age groups of the target customers are vast and wide. For instance, the younger
sections will be more comfortable with the online mediums while the older customers will be
more convenience with the physical stores. Thus, the brick and click concepts of distribution of

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Excelsior clothing will be effective in dealing with their target customers. Only the third party
retailers will be involved in the process in order to gain the maximum market penetration. This
should be noted that New Zealand is having the diverse destinations for the tourists and thus it is
important for Excelsior clothing to have the extensive forward integration. In this case,
involvement of the third party retailers will reduce the liability of Excelsior clothing in terms of
their forward integration. The typical buying patterns of the target customers will be one time
due to the reason that international tourists are the variable customers. However, it should be
noted that customer loyalty and retention can be gained, which will promote repetitive purchases
of the customers (Wonly & Mueller, 2013).
Competitor analysis
Some of the major competitors of Excelsior clothing are Kathmandu, Macpac and
Bivouac. They are operating in the same segment and offering same sets of products to the
customers. It is identified that Kathmandu is offering more rugged and adventure oriented
clothing to the customers. Thus, the utility and ruggedness of the cloths are focused over the
looks and aesthetic values. It is also denoting that target customers of Kathmandu are
adventurous and professional sports persons and not the common tourists (Sohel, Rahman &
Uddin, 2014). On the other hand, Macpac will pose more challenge to Excelsior clothing in
terms of substitute products due to offering similar products. They are focusing more on the
durability of the products over others and thus their products are long lasting. Customers looking
for durable products without preferring the aesthetic values are their target segments. Both
Kathmandu and Macpac are focusing on ruggedness and durability in promoting their products,
which is helping in catering to the adventurous customers.

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It is also being identified that pricing is given the major concentration in the promotional
strategies. This is due to the presence of good number of competitors. Majority of these branda
are promoting premium pricing due to the reasons that higher end customers are majorly
preferring for adventures in New Zealand. On the other hand, quality is the key and major
elements for adventure clothing, which will require premium pricing to be followed. It can be
concluded that the major strengths of these two brands are the quality of their products. This is
also helping them in targeting and retaining the customers (Eizenberg & Salvo, 2015). However,
on the other hand, it is also being concluded that less concentration on the aesthetic value of the
products is reducing the potentiality of the products among the mainstream customers. They are
only limited among the hardcore adventurous customers.
Determination of the internal factors
Strengths
 One of the major strengths for Excelsior clothing is their diverse product portfolio. They
are offering mainstream fashion clothing along with the adventure based products.
 Focusing more on both aesthetic value and utility will help to provide more value
propositions to the customers over their customers.
 Having presence in both online and offline mediums is helping Excelsior clothing to cater
to different customer segments.
Weaknesses
 They are having lower level of market penetration and presence compared to their
established competitors.
 Catering only to the higher end customers will restrict their potentiality in the long term.