Marketing Research Report: Topshop's Strategies and Analysis

This report offers a comprehensive analysis of Topshop's marketing strategies, delving into consumer buying behavior, marketing research techniques, and brand loyalty. It examines the stages of the consumer purchase decision-making process, theories of buying behavior, and factors influencing buyer behavior. The report investigates Topshop's branding strategies, evaluates marketing research techniques like surveys and focus groups, and explores sources of secondary data. It also includes an analysis of the fashion industry in the UK, competitor analysis, and opportunities and threats for a new shoe product. Furthermore, the report evaluates techniques for assessing customer response and presents a customer satisfaction survey, providing insights into Topshop's performance and brand image. The report concludes with an assessment of the relationship between brand loyalty, corporate image, and repeat purchase, highlighting the interconnectedness of these elements in driving business success.

MARKETING
INTELLIGENCE

TABLE OF CONTENT
INTRODUCTION ...............................................................................................................................3
1.1: Main stages of purchase decision making process for an individual consumer.......................3
1.2: Theories of buying behaviour in context to individuals and markets.......................................4
1.3:Factors affecting buyer behaviour.............................................................................................4
1.4: Relationship between brand loyalty, corporate image and repeat purchase.............................5
M1 Branding strategies in Topshop............................................................................................5
D1 Evaluation of strategies suggested for Topshop....................................................................5
2.1: Marketing Research Techniques...............................................................................................5
2.2:Sources Of Secondary Data to Achieve Marketing Research Objectives.................................6
2.3:Validity and Reliability of Market Research Findings..............................................................7
2.4: Report on the new opportunity of Topshop and its Marketing Research Plan.........................7
M2 Techniques used for Marketing Research.............................................................................9
D2 Taking responsibilities for managing and organising activities............................................9
3.1: Size and trends for the fashion industry in UK.........................................................................9
3.2: Competitor analysis for Topshop............................................................................................10
3.3: Opportunities and threats for the new shoe product of Topshop in UK.................................11
TASK 4...............................................................................................................................................12
4.1:Evaluation of two techniques of Topshop for assessing customers response..........................12
4.2: Customer satisfaction survey for Topshop's products and services........................................13
4.3: Review of Survey ..................................................................................................................17
D3: Demonstration of creativity ..............................................................................................17
REFERENCES...................................................................................................................................18

INTRODUCTION
Marketing intelligence is an influential aspect of business strategies. It is important to
operate on the tools and guidelines of the market research. The report aims to evaluate the
understanding of buying decision of consumers and different tools used to perform marketing
research in order to develop marketing plans. The report is driven in context to Topshop fashion
firm which has been widely known for its unique marketing strategies (Apgar, 2013). A customer
satisfaction survey has also been reviewed proposing the status of the company in the minds of
consumers.
TASK 1
1.1: Stages for purchase decision for individual person
A consumer goes through different stages before making the decision of buying a product.
These stages are as follows:
 Need to buy-An individual will always have a requirement of a reason which would
stimulate him to buy a product and the reason would be his need to purchase. It acts as a
catalyst which enhances their decision-making (Tollin and Schmidt, 2015). In addition to
this, customer perception also need to be determines so that benefits could be implemented
for them in successful manner.
 Searching the information- Once the need is determines then the search process will start.
Information of desired product can be gathered from sources like friends, family,
advertisements, sales people, newspapers, radios, own experience of using a brand. Further,
feedback from the customers are also undertaken so that improvement in the business
performances could be ensure effective results at workplace (Hakala, Lemmetyinen and
Kantola, 2013).
 Evaluating other alternatives- After gathering the information alternatives of the product are
identified. Consumer would want to choose the best option available in the market.
 Decision of purchase- After undertaking all the above process purchase decision is made but
the decision may vary and he may walk away from the decision. This is very crucial stage as
he may or may not buy the product (Trivedi, Patel and Savalia, 2015).
 Purchase- Once the decision ascertain, each person need to determine final purchasing of
products.

 Evaluation with post purchase- In the last stage is to evaluate the purchased product. They
will determine the loyalty of brand and whether the purchased product is satisfactory or not.
1.2: Theories of buying behaviour in context to individuals and markets
There are different theories describing the customer's buying behaviour. Two of them are: Cultural Theory- Cultures such as values, beliefs, traditions, thinking etc affects their
buying decision. These alter according to their occupation, society mindset, peer
group trends, family, income, status etc. Generally there are people who tend to
influence the purchase decision (Ashurst, 2016). Like there is a girl who have a good
sense of fashion than all the other friends in the group will be influenced by her
decision and culture.
 Environmental buying behaviour Theory- Climatic conditions and environment
affects the pattern and design of the product individuals would want to buy. Like
winter purchase will be different from that of summers. Also, environment of the
place affects the decision. One might go for options but when he is tiered all day he
may choose the first he gets (Penn, 2017). Like one might buy something different in
order to impress someone though he does not like it much.
1.3:Factors affecting buyer behaviour
Consumers buying behaviour is affected by many factors. Some of them are :
1. Psychological Factors- These includes motivation factors which are the needs and goals of
consumer which influence them to take purchase decision. Attitudes of consumers, their
emotional and mental state, beliefs, also impact the behaviour.
2. Personal Factors- Age and life cycle of individual impacts the behaviour as choices of
teenagers will be different from that of adults. Choices will also differ with the occupation
and social status. Middle class consumer are likely to buy average products whereas high
class customers will buy branded and expensive stuffs. Life style of the individual will
determine the kind of trend they would want to peruse like a systematic lifestyle and a
funky, open and travelling lifestyle will alter the choices.
3. Cultural Factors- The religion, tradition, custom, race, geographic location etc tends to
influence the buyers' behaviour. A Christianity follower will have a different perception and

choice from that of a Hindu follower. Western countries have different trends and Eastern
countries have different (Mokhtar, Yusoff and Ahmad, 2014).
1.4: Assess the relationship among brand loyalty, corporate image and repeat purchase
The corporate image of a company refers to the creation of image in the minds of people.
Repeat purchase is the behaviour when a buyer after purchasing a product once again and again
purchases from the same brand. Brand loyalty is the dedication, trust and loyalty of customers
towards a brand. These three terms are interrelated as they depend on each other. A company tries to
create a good corporate image in the market and in mindset of customers. Once it has been done
than people will purchase a product of that company and if he gets satisfied with it he tends to
repeat the purchase from that firm every time. This creates the brand loyalty of the company. Once
this has created them the consumer will repeat the purchase and even if do not wish or is not in need
of then also he will tend to purchase from that brand only (Babin and Zikmund, 2015). Corporate
image and brand loyalty is creates effective relationship with repeat purchase. This is because, when
products and services of Topshop is making corporate image, customers comes again and again to
purchase it. In addition to this, brand loyalty is creative aspect that assist to frame idea and opinion
towards effective results.
M1 Branding strategies in Topshop
Collaboration of the company with Oxford Circus is a beneficial and attractive strategy. But
there are possibilities that people come for window shopping and just for entertainment purpose.
The cited company can adopt the strategy of lucky draws on a particular day or week to increase
sales and repeat the purchase.
D1 Evaluation of strategies suggested for Topshop
The lucky draw strategy can help the company to gain customer attraction. Also, in this case
curiosity will be created in the buyers about the gift hampers and if they don't win they will try it
next time. This will increase the repeat purchases of customers and help in increasing brand loyalty.
TASK 2
2.1: Marketing Research Techniques
Marketing research could be done using various techniques. Topsop can use the following
techniques to perform the research :
 Survey: It is the effective technique to conduct market research. In this way, the chosen

organisations can take feedback from their customers regarding business products and
services so that it would be beneficial to attain overall growth in Topshop.
 Conducting Surveys- Surveys are one of the best way to determine needs and demands of
the consumers (Clark, 2016). The cited company can prepare a questionnaire and ask those
questions to people with different culture, age groups, geographic locations, economic status
etc. in order to acquire complete information about the needs. Surveys can be personal
surveys where one to one questioning takes place or a telephonic survey can be done but are
slightly costlier, or mail survey can be approached which are cheaper than telephonic survey.
Online survey is another option and simple and inexpensive (Catterall, Maclaran and
Stevens, 2013.).
 Focus Groups- This process involves a moderator. Minimum three groups are made of
different people and a discussion on the mentality, trends, perceptions, needs is done. The
moderator takes a lead in the discussion. These discussions are tapped or recorded and even
video recording can be used to gather information.
 Actual Short Trials- This is done by placing the short range of stock to be offered in the
field. The responses of customers are noticed and accordingly improvements are made. This
is helpful in determining the improvements needed in the product.
2.2: Source of external secondary data to accomplish marketing research goals
In this way, two types of resources for collecting the secondary information through data
which are as follows:
1. Internal Sources
 Sales Data- These includes received orders, costs of delivery, invoices, returned products
etc. All the data is recorded for research.
 Fiscal Data- The data recorded in files like storage, product lines, production cost etc are
the financial records which can be used for market research.
 Transport Data- All the information about the transport operation is kept by the company
like profitable routes, roads, taxes etc can also be used for the purpose.
 Storage Data- The information of the stock like stock handling cost etc account for the
storage information used in research process.
2. External sources
Secondary sources are useful to undertake views from different people regarding business

operations and outcomes in successful manner. Therefore, it assist to carry effective results through
developing outcomes and results. In Topshop, it assist to gather relevant information regarding
conduct of survey and many other things.
 Government statistics- This includes statistics of production, population, survey etc.
 Trade associations- Trade associations have different and varied records but it is good to
observe their statistics and what they publish (Clark, 2016).
 Commercial services- There are organisations which keeps market reports but charge for
giving information. They can be approached for the purpose
 Global institution- Bank reviews, books and journals, universities also keep market
information and can be used for research.
2.3: Validity and Reliability of Market Research Findings
Validity of research sources refers to whether the research actually matches what it aims to
be. Reliability means that whether the research results can be actually applied to the groups and
communities. It means the generation of consistent results. The internal sources are always valid
and reliable whereas the external sources may sometimes be not valid. This is because the research
data varies in different organisations like trade associations have varied data. But not all the
resources are invalid there are possibilities that few sources may be valid and reliable. Internal
resources can always be trusted and taken into account (Hollensen, 2015). Sample bias is the
statistical tool which conducted for various members that intended population which is less likely to
include other people. In addition to this, it demonstrates favours outcomes that are ascertain in
systematic results.
2.4: Report on the new opportunity of Topshop and its Marketing Research Plan
In order to make marketing research plan for shoe in Topshop, following elements need to
be included that creates new opportunity:
Define objectives: In respect to make effective results, the chosen organisations determines
their several objectives for implement new product that is shoe. It includes establishment of
company reputation through bringing innovations (Khan, Ahmed and Prasad, 2015). In this way,
Topshop demonstrates recent trends that assist to enjoying high growth in sales profits with
distinctive features in products and services.
Define target market: Target market is particular group of consumer in which products has
been served with developing aim. Topshop target their customers through breaking in it different

segments. With the help of marketing efforts, products and services will be distributed in respect to
targeting the women and men. In other words, products such as shoe is distributed in particular
segment of female and male candidates.
Research questions: In respect to make research questions, following elements are included:
 Who currently buying new shoe from Topshop?
 What need are determines to satisfy customers demand?
 What different aspects need to be includes that attracts customers?
 What improvements could be determines in product and services to meet with people
demand and requirements?
Collection of data: Data collection is the important process for gathering and measuring
information on variable of interest. In this aspect, systematic fashion enable to find out research
questions, test hypothesis and ascertain outcomes. With the help of customer feedback, Topshop
collect data regarding their business operations and services that could be implemented in
systematic way. In order to collect data primary and secondary sources has been implemented at
workplace. Primary data has been collected through surveys and descriptive researches. On the
other hand, secondary data collected from published or unpublished sources such as newspapers,
articles and magazines, etc.
Analysis of data: In this step, data has been analysis in the systematic process through
inspecting, cleansing, transforming and modelling. Within the selected business, goal has been
discovered with the help of useful information, suggestions and conclusion which support to
decision-making in Topshop.
The launch of new shoe product for young generation in London carries many opportunities
in the business. In order to evaluate these opportunities it is important to perform a market research.
The research strategy involves usage of different techniques such as surveys, focus groups, etc. A
survey of market would be beneficial for the qualitative and quantitative analysis. IT would be
efficient and easier to conduct personal survey and online survey. For personal survey a team of
employees is to be created which will prepare the questionnaire. Once this is done the team should
approach people of different locality and culture to collect information. Online survey can be done
by creating a website or by using social media website. Then secondary data could be collected by
commercial organisations, financial reports and stock report. Gathered information could be used in
the launch of the product (Li and Li, 2013).
Analysis shows that footwear market continues to steal the market year by year. However,

there has been a large scale shift in the consumers' behaviour. According to statistics footwear sales
in UK has increased by 2.4% year on year. A rise 0.8 sales has been observed ion footwear chains.
Its sale with clothing multiple rose to 0.9%. The number of competitors is more and quality
products are offered in the market. Topshop needs to get better stocking and selling and match the
needs of people to gain the market.
M2 Techniques used for Marketing Research
In order to perform marketing research survey technique is used. This includes personal
survey and online survey. This technique would provide a better understanding of consumer
behaviour and needs as there has been fluctuations in their behaviour. Online marketing will be
easier and inexpensive.
D2 Taking responsibilities for managing and organising activities
The researcher has used different tools for market research in order to understand the
consumer behaviour, needs and demands. The techniques used are reliable and valid. Using these
tools the company planned the launch of new product according to the data collected (Marrin,
2016).
TASK 3
3.1: Market trends and size in fashion industry of UK
In UK fashion industry is enhances continuously with creating high employment rate. There
is high population exist that are developing outcomes in term of high market share. This industry is
continuous expanding their fashion around 6%. Domestic market value of the fashion industry is 66
billion pounds. There are 555,000 employment industries take place that serves different types of
fashionable products. In clothing industry there are 414,000 retail business exist. In footwear and
leather goods, there are 59,000 retail businesses are serves their products and services. In
manufacturing of wearing apparel is deals around 34,000 organisations.
UK fashion industry is a vibrant industry in the world. The trends and designs of fashion
have seen significant changes. Statistics shows that the industry has a market share of 6%. The
domestic market value of this sector in UK is around 66 billion pounds. The industry has generated
significant amount of employment. This sector is the world leader. Past two decades have
undergone through severe changes. More attraction towards designer clothing is observed. The UK
fashion week every year sets the fashion trend and customers are likely to buy those type of
collections. The innovations in the material and patterns of the models drives the vehicle of fashion

trend. There has been continuous experiments with designs and materials of footwear and clothing.
The contribution if fashion industry is highly valuable in the economy of UK (Mullin, Hardy and
Sutton, 2014).
3.2: Competitor analysis for Topshop
There are many competitors exist in market of Topshop. Competitor analysis is the process
in which competitors has been identified and evaluating strategies that determines strength and
weaknesses to revealed the products and services in market. Following are such competitors exist in
market of the chosen business:
M&S
Background: It is the largest competitor of the chosen business. They are dealing in lifestyle
and retail with lead more than 21 million customers in each day. M&S is segments customer on the
basis of cost conscious group. Their target customers are upper and middle class level people. For
maintain the position, they are including high quality in each product and services (Trivedi, Patel
and Savalia, 2015).
Market and products: M&S dealing in different types of clothing and many other retail
products that carry to develop effective results within the business environment. They are also
launched their own brand of domestic products such as washing powder and aluminium foil.
Brand and market share: Market share is comparative low because, M&S is not deals with
strong competition. They have to concentrate on getting more through develop continuous brand in
systematic way.
Strategies: Strategies in the business is determines through plan, performance, risk
management and brand value. In this aspect, M&S understand their customers through enhance
performances in systematic way. For evaluating their performances, they concentrate on
performance improvement which assist to enhance cash generation (Trivedi, Patel and Savalia,
2015).
Strength and weaknesses: The main strength of this company is that they are most powerful
retail brand with perceive high value of money. They are continuous dealing with more than 1000
stores that are present in 40 nations. However, their market share is very limited due to strong
competition from other retail brand. They have also needs to concentrate to reduce misuse of
imitation products.
John Lewis
Background: John lewis is department store that bring innovations in retail sector businesses.

They segment their customers who have irregular working hours and shift. They are also working
with professionals that are concious about fashion and build brand for themselves.
Market and products: They are focuses on online shopping that includes fashion, home
ware, sports and electrical products (Hakala, Lemmetyinen and Kantola, 2013). In order to make
effective results, they also capture market through involving qualitative products and services.
Brand and market share: Market share of John Lewis is very high because they serve
products and services according to their own value through they will understand perception of each
customer.
Strategies: Main strategy which implement by this firm is to understand customer and their
needs towards particular product and services (Nandi, 2017). Thus, they can involve better buying
processes with renewing old one.
Strength and weaknesses: John Lewis is the most upmarket retail store within the UK. They
are offering various types of fashion brand that assist to choose from own brand as well. They have
more than 35,000 employee who serve many customers in market. However, price of the products is
so high so that supermarket and grocery stores are limit to the target group. Range of the products
are limited compared to the supermarket that perceives limited options that available for consumers
(Peng and Chen, 2015).
Competitive analysis of Topshop according to five force model shows the following
 Threat of new entrants–Threat of new entrants exists for each and every industry but for the
cited company it not very high because it has already clamped its tents as a big brand in the
market and the major retailer sites have already been taken by major groups.
 Threat of Rivalries–There are large number of competitors of the quoted brand There are
many companies such as Zara, M&S, H&M, Mango, John Lewis etc. which offer similar
products and pricing as that offered by the cited company. Strong competition is a major
threat and needs to be taken into consideration.
 Threat to substitutes–This threat has low intensity as it is difficult to find a substitute for
clothing and footwear. However, substitute from other brand will always be a major threat.
 Bargaining power of suppliers-This factor has decreased as the company has a strong
bargaining power on the suppliers.
 Bargaining power of Buyers-This is a moderate factor as it has obligations to offer the
demands of consumers (Søilen, 2013.).

3.3: External environment analysis for the new shoe product for the selected enterprise in UK
The major threats to Topshop are competition from similar brands like H&M, ZARA etc.
Legal government and policies of another foreign land, overseas competition from other brands, etc
are another threats. The competition from the new entrants is inevitable and they offer fast fashion
styles at reduced and affordable prices. Negative impact created due to wrong choice of celebrity
endorsements. Further, high competition is also major threat for the chosen company due to new
businesses coming continuously. It creates negative impact on the Topshop operations and functions
that required to perform effective results at workplace.
Opportunities of the cited company are immense. Targeting of young aundience, regular
updation of the fashion trends, celebrity endorsements, is making the company grow more in the
fashion industry. Globalisation and brand expansion is also helping to raise the international market
share of the company. Website managements, and providing the stage to new designers to present
their work are another opportunity (Robinson, 2016.). Internet market is offering many
opportunities to Topshop. In order to diversify the business in new line, Topshop has opportunity to
enhance their profitability and outcomes in successful manner. In this aspect, they can serve several
product in same industry that assist to grow outcomes and results in effective manner.
TASK 4
4.1:Evaluation of two techniques of Topshop for assessing customers response
Launch of new product and services of Topshop will require evaluating the response of
customers in order to determine the success of the launch. A number of methods can be used for
assessing the consumers responses. Direct method can be applied for this purpose which involves
taking feedback from the customers. It is the easiest and inexpensive way to know the response and
can be done by making them fill a feedback form or write a comment on the blog etc. But for doing
this collection and analysis of data should be done regularly and customers should not be compelled
to do so as there are possibilities that they might not be willing to do so.
In order to conduct feedback from the customer's, the chosen business can identified there
performances at workplace. In this way, they will easily serve profitability in successful manner.
With the help of concentrate on target market, organisations will easily ascertain their results that
are more profitable to enhance performance. In this method, Topshop can also touch with customer
personally to get relevant information at workplace.
Another method is indirect method (Stone and Woodcock, 2014). This can be done by
making complaint centres. This is efficient to receive all the complaints of the consumers and make