Superdry's Marketing Strategy: Challenges and Recommendations

This report provides a comprehensive analysis of Superdry's marketing strategies, encompassing its internal and external environment. It begins with a PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors influencing the company. A SWOT analysis is also included to identify Superdry's strengths, weaknesses, opportunities, and threats. The report then delves into the top marketing challenges facing Superdry, such as lack of targeting, insufficient social media presence, operational issues, technological limitations, and cultural barriers. It also assesses Superdry's competitive positioning using the VRIO model, evaluating the value, rarity, imitability, and organization of its resources. The marketing objectives of Superdry, including sales targets and social media marketing, are also outlined. Finally, the report examines Superdry's current marketing mix (product, price, place, and promotion) and offers recommendations for improvement, such as expanding product ranges, adjusting pricing strategies, and enhancing global presence.

Marketing fundamentals

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Superdry's internal and external environment.........................................................................3
2. Top 5 marketing challenges facing Superdry..........................................................................5
3. Superdry's position relative to their competitors ....................................................................6
4. Marketing objectives of Superdry...........................................................................................7
5. Superdry's current marketing mix and recommendation........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is an activity that is undertaken by the organisation for promoting their
products and services to the customers. It includes various activities such as selling, advertising
and delivering the products and services to customers or any other businesses. Present study is
based on Superdry. It is a UK branded clothing company. It focuses on high quality products that
combine vintage American styling with Japanese inspired graphics. It is a retailer sector industry,
headquartered in Cheltenham, Gloucestershire, England. Its annual turnover is £872 million in
2018.
The report will include an internal and external analysis of the Superdry. It defines the
current marketing challenges of the organisation. It also defines VRIO analysis and positioning
of Superdry from their competitors. It explains the marketing strategy of the company and will
provide some recommendation.
MAIN BODY
1. Superdry's internal and external environment
PESTLE analysis
 Political factor:- This factor impacts on Superdry's long term profitability in some
countries. It operates their operation in many countries so have to deal with different
political risks and environment. There are various political factors that impacts Superdry.
Some factors provide advantage to the Superdry such as political stability in country's
economy is good to establish their business operations in those country. For example,
lower taxation policies in the western hemisphere is beneficial for Sundry. It enhances the
profit of the organisation(Hanlon, 2019).
 Economical factor:- There are various economic factors that impacts Superdry's
business operations. These are inflation rate, foreign exchange rate, interest rate and
many more. With the help of economical factor Superdry can identify aggregate demand
of the personal and household goods and the growth rate of such goods in the particular
country. It impacts financial efficiency of the company.
 Social factor:- Social culture and society's belief, attitudes impacts on organisation's
culture on those environments. There are number of social factors that impacts on
Superdry's profitability. These are demographic, education level of population and leisure

interests etc. when change arises in persons attitude, belief and interest that impacts
negatively on the organisation's sales. For example, in UK, attitude towards the migration
is negative that impact Superdry's ability expand internationally(Marais, 2015).
 Technology factor:- Technology is transferred customers expectation in service sector.
Superdry do not meet expectations but have to innovate that differentiate from their
competitors. This factor creates various threat for Superdry such as technology
development by competitors, impact on product offering and impact on value chain of the
Superdry in consumer goods sector. For example, impact on value chain puts pressure on
Superdry to keep their supplier happy by promoting range of products and services that
enhance the cost of operations.
 Legal factor:- In some country, the legal frameworks are not give enough security to
intellectual property rights of the organisation. Some factors that impact on Superdry
such as anti-trust law in personal& household good's industry and various laws such as
health and safety law, employment law etc. Superdry needs to meet all the standards of
the laws to protect their business operations(Phadermrod, Crowder and Wills, 2019).
 Environmental factor:- Different market have different norms and standards which
impact the profitability of the Superdry. There are various environmental factors such as
climate change, weather and attitude towards green or ecological products. For example,
regular scrutiny of the Superdry by environmental agencies is also increased operational
cost of the Superdry.
SWOT analysis
 Strength:- Superdry have strong brand image and they do not focus on the current trends
that minimize the risk of out of fashion. Company have strong financial position and
creative designs and diversification of the products.
 Weakness:- It is not covered large size customers and have only one reliance brand.
They target only market segment because their prices is so high(Richards, 2018).
 Opportunity:- There is a vast opportunity for Superdry such as they can target various
market segment like affordable, middle and higher class. They can expand their
operations globally.

 Threat:- Lack use of technology creates so many threats for Superdry such as counterfeit
items are sold by some websites and the risk of loosing all market segmentation.
2. Top 5 marketing challenges facing Superdry
Lack of targeting:-
Superdry do not focus on their target market because they do not produce product
according to the needs and wants of the customers. They produce products and services with
unique design that others do not have company. Its prices is very high that do not afford by
anyone that also reduces their market share of the products(Seo, Park and Choi, 2016).
Not enough presence on social media:-
Superdry have very sufficient physical existence and they use many sources of their
product marketing like advertisement, personal selling etc. but they do not promote their product
through social media when 90% of the people are active on social media that is a very big
marketing challenge of the Superdry because their competitors have good social media presence
that decreases their market growth and lost the direct connect with customers.
Operational challenges:-
There are various factors that increased operational cost of the Superdry. The demand of
suppliers are increased to satisfied the demand company promotes range of products to the
suppliers that enhance the cost of the operations. One more operational challenge is regular
scrutiny by environmental agency that also enhance the cost of the operations. This both are
directly effects on sales because operational cost increase the cost of the final products and
makes product so expensive that reduces the sales and profitability of the organisation and
provides opportunities to the other brands that decrease the market share of the
Superdry(Simpson, 2017).
Lack in technology:-
Superdry do not connect their number of operations with technology such as Superdry do
not meet the expectation of their customers because of lack use of technology. Their expansion
in research and development is very less than compare to their competitors because their
competitors have strong technology for research and development and they are willing to expand
in research and development. Technology makes easy process of product development and the

suppliers are able to develop new product that puts pressure on Superdry because they need to
keep happy to their suppliers by promoting range of products that added cost to the operations of
the business that challenge is faced by Superdry because of lack technology that reduces the
market growth of the company as well as decrease the sales and profitability of the organisation.
Cultural barrier:-
It is also a big marketing challenge for Superdry because there are lots of cultural barrier
that reduces their product expansion that directly effect the sales and profit of the organisation
because in UK, the attitude towards migration is negative that impact on Superdry's global
expansion that create negative image of the company to the customers(Singla and Pal, 2017).
3. Superdry's position relative to their competitors
Positioning:-
It means the position of the brand as compare to their competitors in consumers point of
view. Superdry implements transformational positioning strategy because their product prices are
high as compare to their competitors and it is affordable only for certain group of people. It is a
unique brand because of its design (urban mixed with American and Japanese influences) as
compare to their competitors. It offers unique looking with high quality products that distinctive
with their competitors.
VRIO model
Valuable:- First, companies resources must be valuable. Resources are seen as a valuable when
they are able to implement the strategy and improve the effectiveness of the firm by exploiting
opportunities and mitigating threats(Yang and et.al., 2017). If the firm's resources are not
considered as valuable as firm have competitive disadvantages. Superdry have its unique brand
designs as valuable resource and it gives competitive advantages to the company.
Rare:- Second, resources must be rare. The resources must be acquired by one company that
consider as rare. If the company posses a large amount of valuable and rare resources that have
temporary competitive advantage. Superdry have unique urban mixed with American and
Japanese influences in their product that is made rare to the Superdry.
Inimitable:- The valuable and rare resource may help company to implement their strategy that
competitors are not pursued(Lee, Kozlenkova and Palmatier, 2015). It gives short term

competitive advantage but competitors will try to imitate these resources. If Superdry has unique
historical conditions that can help for present and future competitive advantages.
Organized:- If the company has properly organized their resources in adequately manner that
provides long term competitive advantages to the company(Watson, McCarthy and Rowley,
2018). Organized means proper strategical planning, budgeting, management control system and
good compensation policies etc. Superdry has organized resources that provides long term
competitive advantages to the company.
4. Marketing objectives of Superdry
Increased the sales by 20%:-
The main objective of the marketing manager of the Superdry is increased their sales by
20% within 1 year and the records of every moths are maintained by the manager. There is a
good supply chain management in the organisation that provides proper resources and efficiency
in the production(Burke, 2017).
Enhance the target market of their products:-
Superdry can introduce variety of the product within 12months for enhancing their target
market. The target marketing is pre-decided and offered variety of the product to the customers
that is enhanced the profitability of the organisation as well as the growth.
Focus on social media marketing:-
For the marketing of the Superdry, social media is best because there are billions of
people and their big group of target people(What are marketing objectives? Example &
overview,2019). With the help of social media they can target huge population for their products
within 12months that helps to enhance the sales of the products as well as profitability.
SMART Objectives
Specific These objectives are easily identified and
understood
measurable It can be measured, recorded and monitoring
Achievable The objective are realistic in given
circumstances and the proper resources are
available in the business.

Realistic The objective are relevant to the firm's growth
Time-specific The objectives are set with the time limit. This
deadline is also realistic
5. Superdry's current marketing mix and recommendation
Marketing mix of Superdry analyses the brand that covers 4 P's and explain the strategies of the
marketing mix with the recommendations for Superdry.
Product:-
It has various retail stores in many countries. The company deals with unique design
cloths for men and women that differentiate from competitors. It uses differentiate product
strategic for their products. Their target market is higher class people.
Recommendation:-
1. They should involve various range of products.
2. They should focus on present trends accordingly change in their products.
Pricing:-
Since Superdry has only one brand and target only one set of consumers. So, there price
range is fixed for their products. Their products are affordable for only higher income of people.
It uses premium pricing strategy for their product because they provide premium quality
products.
Recommendation:-
1. They should reduces their prices by increasing ranges of the product.
2. They should implement discounted pricing strategy for connecting more customers.
Place:-
Superdry have exclusive stores in various locations where the company sells its products.
There stores are mainly located in big cities and shopping malls because their targeting people

are come to these places already. It uses direct distribution strategy for targeting their group of
people.
Recommendation:-
1. They should expand their stores globally.
2. They should enhance their locations in US because of untapped market.
Promotion:-
Superdry uses various promotion methods for their product marketing. These are
advertising, personal selling and selling promotion for long period etc. it is a very actively
promote their brand through promotion methods. It mainly uses direct marketing strategy for
their product promotion.
Recommendation:-
1. They should promote their products through social media
2. They should expand on research and development for knowing best promotion methods.
CONCLUSION
From the above study it has been summarised that marketing plays an essential role in
order to achieving success to the company. It is explained the SWOT analysis and PESTLE
analysis for understanding of the influence of the internal and external environment. It is
analysed the marketing objectives of the Superdry. With the help of VRIO analysis the company
can identify their competitive advantages and their competitors position towards the company. It
has been also analysed the marketing mix of the Superdry and given the recommendation for the
future improvement. This report has been given the understanding of marketing in the
organisation.

REFERENCES
Books and journals
Burke, M.C., 2017. Strategic choice and marketing managers: an examination of business-level
marketing objectives. Journal of Marketing Research.21(4). pp.345-359.
Hanlon, A., 2019. Digital Marketing: Strategic Planning & Integration. SAGE Publications
Limited.
Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., 2015. Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of
Marketing Science. 43(1). pp.73-99.
Marais, H.T., 2015. Effectiveness of selected marketing activities in creating brand equity in the
South african clothing market amongst black Generation Y students (Doctoral
dissertation).
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Richards, J., 2018. Passing and moving: negotiating fieldwork roles in football fandom
research. Journal of Organizational Ethnography.
Seo, B.G., Park, D.H. and Choi, D., 2016, August. Innovative service concept generation based
on integrated framework of design thinking and VRIO: the case of information
supporting system for SMEs in Korea. In Proceedings of the 18th Annual International
Conference on Electronic Commerce: e-Commerce in Smart connected World (p. 23).
ACM
Simpson, O., 2017. The Power of Consumers and Unforgettable Experiences: Why PR
Practitioners Should Abandon the Traditional. Journal of Promotional
Communications.5(1).
Singla, M. and Pal, S., 2017. Reduction of changeover time during style change. NIFT-Mumbai.
Watson, C., McCarthy, J. and Rowley, J., 2018. Consumer attitudes towards mobile marketing
in the smart phone era. International Journal of Information Management. 33(5). pp.840-
849.

Yang and et.al., 2017, December. The effect of service quality among customer satisfaction,
brand loyalty and brand image. In 2017 IEEE International Conference on Industrial
Engineering and Engineering Management (IEEM) (pp. 2286-2290). IEEE.
Online
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