Marketing Intelligence Report on Topshop's New Shoe Product Launch

This report provides a detailed analysis of Topshop's marketing intelligence, focusing on the launch of a new shoe product line. It begins with an introduction to marketing intelligence and its application to Topshop, a leading clothing retail company. The report then delves into the stages of the purchase decision-making process and explores various theories of buyer behavior, including generic and cultural theories, and identifies the factors influencing buyer behavior, such as cultural, social, and personal factors. The report further examines the relationship between brand loyalty, corporate image, and repeat purchases. Task 2 focuses on market research techniques, including surveys, focus groups, and observation, along with the identification and use of secondary data sources. The report also discusses the validity and reliability of market research findings and presents a marketing research plan for the shoe product launch. Task 3 analyzes the fashion industry's size and trends, conducts a competitor analysis, and identifies opportunities and threats for Topshop. Finally, Task 4 assesses customer response techniques, including a customer satisfaction survey, and evaluates the success of the survey. The report concludes with a summary of findings and recommendations.

Marketing Intelligence

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Stages of purchase decision making process.........................................................................3
1.2: Theories of buyer behaviour.................................................................................................4
1.3: Factors affecting buyer behaviour........................................................................................4
1.4: Relationship between brand loyalty, corporate image and repeat purchase.........................5
TASK 2............................................................................................................................................6
2.1: Different types of market research techniques.....................................................................6
2.2: Identification and use of sources of secondary data.............................................................6
2.3: Validity and reliability of market research findings.............................................................7
2.4: Marketing research plan........................................................................................................8
TASK 3............................................................................................................................................9
3.1: Size and trends of fashion industry.......................................................................................9
3.2: Competitor analysis..............................................................................................................9
3.3: Opportunities and threats....................................................................................................10
TASK 4..........................................................................................................................................11
4.1: Techniques for assessing customer response......................................................................11
4.2: Customer satisfaction survey..............................................................................................11
4.3: Success of completed survey..............................................................................................13
CONCLUSION..............................................................................................................................14
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INTRODUCTION
Marketing intelligence has been defined as the fruitful information used by companies for
effective decision making regarding their products and services, in order to determine the future
opportunities in industry. It is the process in which marketing team of company collects data and
information from customers and adopt various tools and methods to utilise in its operations. the
present report is based on the company namely Topshop, which is one of the leading company
engaged in the business of clothing, accessories and make up products. The company desires to
introduce new range of shoe product of company, for which it has framed a detailed marketing
plan, which is consist of its objectives, opportunities and threats. Along with this, different
buying behaviour theory has also been explained in report.
TASK 1
1.1: Stages of purchase decision making process
Purchase decision making process is the concept in which buyer has to decide for
purchasing of products and services of a company. Topshop a leading clothing retail company in
UK is engaged in the business of clothing, confectionery and accessories etc. the company sells
clothes at low cost in the market below average prices (Aljukhadar and Senecal, 2011.). There
are a set of procedures in the decision making process of the customers that support in
purchasing products of the cited firm. The steps in the process are as follows: Need recognition - It is the concept in which the need recognition of customers has been
recognized, that buyers should have the specific products and services in order to fulfill
its need. Information search- The consumers then search and gather information about the
products of different companies offering those products and services. Evaluation of alternatives- After that, the customer would evaluate the alternatives and
decide and choose the suitable alternative among all the alternatives from which they can
purchase the products and services that helps in fulfilling its needs and requirement. The
consumers might keep prices, quality and brand as the evaluation criteria (Ardley, 2011).
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 Purchase decision- After that, the user will take the purchase decision regarding buying
product or services which will give highest level of satisfaction and also fulfills its
evaluation criteria.
 Post purchase behaviour- This determines whether the buyer is satisfied with the product
or services or not. Customer satisfaction, dissatisfaction or delightedness depends upon
the buyer expectations and the product of service and quality perceived performance
(Babin and Zikmund, 2015).
1.2: Theories of buyer behaviour
There are many theories on buying behaviour of individuals and business. In the context
of Topshop Company, a leading clothing retail company in UK, manager of cited company have
analysed that the buying behaviour of its respective customers are affected by 2 types of theories
namely: Generic theory – It is the concept in which the purchases, customer will follow a generic
model of decision making by going through a process to make a decision. In this concept,
buyer will only research about a product and it’s pricing as and when buyer will
recognise a need to purchase a particular product. As an example, consumers of Topshop
Company will form decision to purchase shoes and accessories, when they really
recognise the need of purchasing it (Cheah and Phau, 2011). After the decision has been
made by the consumers of company to purchase a particular product, buyer will
investigate about its features and prices and after comparison, consumer purchases the
particular product..
 Cultural theory- A consumer's culture is a set of values and beliefs learned in the context
of harmony. These values and beliefs lead to certain buying behaviours. Consumers are
affected by various cultural factors like; occupation, income and education. Consumers of
Topshop Company makes a decision about purchasing the products according to their
respective cultural factors (Gabrielli and Balboni, 2010).
1.3: Factors affecting buyer behaviour
There are many factors which influence customers that play an important role in buying
new product and services of Topshop Company. Some of these factors are:
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 Cultural factors- In the field of consumer behaviour, cultural factors affect the
customers the most, within different types of society. Manager of Topshop Company
must consider psychological and behavioural effects. Consumer needs should be
identified by knowing their culture and should aim to full fill it. Management of Topshop
organization aims to provide clothes and accessories according to different cultures of
people. For example, young generation prefers cool tank tops and hot pants, while boys
prefer jeans etc (Henley, Raffin and Caemmerer, 2011).
 Social factors- This is another factor which impacts the buying behaviour of consumer.
It includes reference groups, family, role and status etc. consumers are affected by the
opinions of family and their friends regarding whether to buy a particular product or not.
Consumers are also affected by their role and status. If they belong to any prestigious
organisation, they will choose clothes accordingly.
 Personal factors- Age and life cycle, occupation along with financial or economic
conditions impacts the buying behaviour of a person to a great extent. For an example, if
the economic condition Consumer of Topshop Company is not good or stable then it will
affect its purchasing power.
1.4: Relationship between brand loyalty, corporate image and repeat purchase
Brand loyalty – It is the concept which refers to faithfulness of the customers towards a
specific brand, in comparison to its competitors (Hollensen, 2015).
Corporate image- It is the concept which is created in the minds of customers, including
both employees of the corporate world and general public and consumers. The image gets
affected by firm's policies, practices and operations.
The three notions of brand loyalty, corporate image and repeat purchase are
interconnected with each other. Topshop employs various creative and effective marketing
techniques which can help in building an affirmative corporate image of the cited company in the
community. The customer gets attracted to the brand and buys it. The first buy is test of product
and if consumer is repeatedly purchasing the same brand, it creates brand loyalty. The product
must be able to fulfil needs and specifications as required by the customers; so that it will be
assured that they will go back to buy that product and also recommend it to other people
associated with them (Kirtiş and Karahan, 2011). The consumer will only buy the products and
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services of Topshop Company, if it will be successful in identifying the needs and wants of
customers along with satisfying their needs. . If brand loyalty is positive then a positive corporate
image is projected to the public.
TASK 2
2.1: Different types of market research techniques
Market research is the process which defines the tasks to be completed in conducting a
market research study. The management of Topshop Company has decided to have a market
research in its market using 3 different techniques. The 3 types of market research techniques
used by Topshop Company are as follows: Surveys- it is the method of using concise, straightforward questionnaires, which help in
analysing a sample group which represents the target market. Reliability of results of
such surveys depends on the size of sample. Larger the sample, the results will be more
reliable. Topshop Company has adopted online survey methods in which surveys are
done online through sites and company asks for the opinions and preferences. It is an
inexpensive way (Lai-Ming Tam, 2012). Focus group- a focus group is consists of six to ten people who strongly represents the
target audience, to be monitored in a room which will be fitted with a unidirectional
mirror. Coordinator would observe and evaluate the psychology and behaviour of
customers. Topshop Company has adopted this method of research because it will help
the company to understand the pattern of consumption of clothes by consumers, which
set the foundation for developing its clothes and shoes or accessories.
 Observation- Individual responses to surveys and focus groups, sometimes do not match
with people's actual behaviour. Company can observe consumers by appointing an
observer that will observe their action by how the consumers approach a product, how
long they spend in display area, etc (Mitic and Kapoulas, 2012).
2.2: Identification and use of sources of secondary data
Secondary sources of information can be divided into two categories: internal sources and
external sources.
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Internal sources- it contains the following sources:
 Sales data- Topshop Company collects information in the course of their everyday
operations like, orders are received and delivered. Recording of costs, sales personnel
submit visit report etc. this source has the great use in marketing research by company as
recording of sales and orders of clothes, accessories to different types of customers will
give an idea about the product being profitable or not (Mullin, Hardy and Sutton, 2014).
 Financial data- Topshop Company has a great deal of data recorded in file on the costs
of producing, storing, transporting and marketing its clothes and accessories. It is used as
to estimate the costs attached to new products.
External sources-
 Government- the different factors under this-
◦ Population censuses
◦ Social surveys, family expenditure surveys
◦ Import and export statistics.
 Trade associations-
◦ Trade associations differ widely in the extent of their data collection and information
dissemination activities (Nasri and Charfeddine, 2012).
2.3: Validity and reliability of market research findings
The company measures the validity and reliability of their market research findings as the
secondary and primary data that has been used by Topshop Company to gather the data and
information has been taken through authentic sources. As the market research has been
conducted by Topshop Company to gather and collect information about their products and
services is reliable in nature. The validity and reliability of data depends upon the source of data.
However, the data that has been obtained from surveys on internet are not considered reliable
and valid as the consumers and the information collected from can be fake as no face to face
interview has been conducted. On the other hand, company has adopted focus group strategy,
which provides legal and ethical nature information (Nasri and Zarai, 2013). In this company has
focused few people and have personal interaction so the information is real and not fake. While
company has also adopted observation method of research which involves observation of actions
and deeds of consumers while they look for a particular product and services. It is also accurate
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and legal in nature as company itself appoints an observer for the purpose. The company aims to
research on the basis of ethical and true basis.
Furthermore, in this light, it can be said that there are many sources by which the data can
be collected. These can be classified as primary and secondary sources of data. It can be
considered that the data which has been collected by Topshop Company is from primary and
secondary sources of data. The data which has been collected by internet is not really as
authenticated and pure as chances of fake information can happened.
2.4: Marketing research plan
The marketing research plan for launching shoe product mainly focuses on the different
steps as follows-
Background
Topshop is British multinational fashion retailer of clothing, shoes, make up and
accessories, which is one of the leading companies in UK. It has around 500 shops worldwide
and of which 300 are in UK along with online operations. In order to enhance and increase its
profit ratio and sales, company is planning to bring a new range of shoe products in market
(Persaud and Azhar, 2012).
Rationale
The rationale of company is to successfully launch their new range of shoe product
particularly targeting the young customers of UK.
Objective
 To have an assessment of the needs and requirements of shoe product among the target
customers. To measure the existing opportunities and threats within the Retail and footwear industry.
Selection of methodology
For conducting the market research plan different methods has been used along with
different sources so that required information has been obtained. The primary data has been
fathered through design questionnaire for the customers of Topshop. Along with secondary data
has been collected through reviewing the online journals, articles etc (Reijonen and Laukkanen,
2010). The researcher will also focus on both quantitative and qualitative technique for gaining
relevant information.
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Data analysis
The last step in marketing research pan is data analysis for which researcher will use
thematic approach for determining the actual level of satisfaction towards their products (Reza
Jalilvand and Samiei, 2012).
TASK 3
3.1: Size and trends of fashion industry
Market size is measured by the total sales and volume of all sales in the market. Sales
volume is measured in terms of the number of unites of goods purchased, whilst sales volume
measures the total amount spent by customers. Each organisation is having their target market
which is full of individual competitors, the individuals have a potential to be a buyer of their
products and services. The company namely, Topshop is one of the leading retail fashion
company engaged in the business of clothing, accessories etc. the company's apparel accessories
are shifted towards more casual style for girls in UK (Tsiotsou and Vlachopoulou, 2011). The
reason behind this could be workplace being shifting away from informal dress code to casual.
There is a decrease of 2% in formal wear retail volume. In footwear, growth of Topshop
Company in UK is slowest, with just half percent growth. This was due to strong economic
uncertainty. But sports foot wear has been increased at a good rate of 8% because people are
looking more for their ease and comfortability. Customers are more looking for the clothes and
accessories which are at reasonable prices as well as of good quality, which maintain their
standard of living.
The marketing manager of the company namely Topshop is desirous of assessing its
market size or trends which are prevailing in market area. In this regard, it has been assessed that
recent trends towards clothes has been changed as girls are preferring clothes like maxi, skits,
and one pieces which are new in trend. So, the company is required to manufacture products in
this way only. In this regard, the marketing manager of cited organization is required to form
decisions which are in accordance with the preferences of customers. As customers, especially
girls want to be look perfect with quality apparels and accessories, they always prefer the
company which is able to fulfil their requirements. Also, there is a declined change in the use of
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jeans and denim materials. The company has a significant size in the market area of clothes and
fashion industry. Also, it is a brand value for producing maxis which are comfortable to wear.
3.2: Competitor analysis
In the present context competitors has been evaluated on the basis of their policies and
strategies, along with strengths and weaknesses this is known as competitor analysis. It gives an
advantage to company to know about its rival companies. This analysis gives both an offensive
and defensive strategic context to identify opportunities and threats it’s an important component
of corporate strategy (Turban, Sharda and Delen, 2011). This strategy has been adopted by
Topshop Company so as to have a close analysis with Zara, which is also one of the leading
clothing company of UK. Zara is a retail company established in UK, which has a great impact
on fashion industry among world. The cited organization deals in the products like luxury home
products, clothing materials etc. it can also be noted that supply of goods and services are based
trends of customers. Beside this, the cited organization is a manufacturer of 450 million items
per year. Likewise, Topshop, Zara is also engaged in business of retail of clothes for men and
women. Total revenue is generated as per 2016 is US$15.9 million.
Strength and weakness of Zara:
Strength:
 The cited organization is efficient and has an effective distributive channel.
 It is comprised of fashionable recent trends.
Weakness:
 Less connectivity with people. In other words, less promotions on social media and
networking site.
 Also, while accessing the site of company, error comes in during entering into account.
Competitive analysis is done because Strong and capable business strategies have been
framed against competitors.
Competitor analysis
Key factors Zara Topshop
Customers satisfaction 6 8
Economies of scale 5 4
Product distribution 7 9
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Innovation 5 8
Total 23 29
From the above analysis it has been assessed that customers are more satisfied by
Topshop instead of Zara. Economies of scale has been achieved by Zara which is the result of its
good strategies. Products are distributed at a good rate in Topshop as compared to Zara. While,
Topshop always bring innovation in the production of its accessories. So it clear that competitive
advantage has been gained by Topshop company (Aljukhadar and Senecal, 2011).
3.3: Opportunities and threats
As a global marketing manager of Topshop, it is essential that company should think of
expanding its global marketing as well as introduce new products and services which can attract
customers. It is essential for the management that it should analyse its opportunities and threats
as well in order to operate its business functions and sustain in the corporate world (Turban,
Sharda and Delen, 2011). The manager has analysed the opportunities and threats of company:
Opportunities-
 It targets young generation consumers. It means very fashion - cautious group will spend
on clothes of company regularly.
 The company has been associated with celebrities that create fame and attachment of
customers to brand.
 The company's affordability and choices enable it to survive through recession period.
 It also has the opportunities to expand internationally, with its market position and status
among customers of UK. It also target middle aged persons, who follow latest fashion in country.
Threats-
 Topshop has the tough competition from H&M and Zara, who cooperates with top
designers and fashion icons too.
 It also faces challenges from new entered foreign brands that offers fast and latest fashion
style, even more at affordable prices.
 It has a negative impact on celebrity endorsement campaign.
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 It also faces some limitations from government policies and also lack some cultual
demands, also.
TASK 4
4.1: Techniques for assessing customer response
The assessment of customer response always depends upon the activities of the firm's
performance in the industry. Besides customer survey, Topshop can assess response of customers
with the help of following techniques:
 Face to face interaction- it is one of the most efficient medium which provides the
probability to judge the emotions and body language of the customer. Feedback through
face to face interaction is the most appropriate manner as the management of company,
on its own conducts a survey for customers, which will include the likes or dislikes and
opinions and suggestions of customers regarding a particular product (Mitic and
Kapoulas, 2012). As Topshop has opened its boutique and also started' Style advisor '
service which enable to support customers everywhere, the company needs to know the
response of customers about the product. So the management team through its way of
interaction and delivering goods and services can come to know about the positive and
negative feedback of customers.
 Online survey- the company can also know the response of customers about their 'Style
advisor' service. It is the personal shopping service, provided by company to its
customers. The company can make online questionnaire survey in order to take
customer's feedback. The company can send the questionnaire through e- mail to their
respective customers (Reza Jalilvand and Samiei, 2012).
4.2: Customer satisfaction survey
Questionnaire
Section -A
Note- Respondents are required to fill the personal information. The information will not be
disclosed to any third party.
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