Fashion

New fashion retailer

1. Key steps of preparing a positioning plan

a. Macro-environment analysis

To review and analyze the surrounding macro-environment (e.g. by PESTEL) and review the happening which will be relevant to our business as a fashion retailer. From the analysis, identify the Opportunities and Threats that are related to our company.

b. Micro-environment analysis

To analyze the micro-environment of the fashion retailer industry and the competitive framework. For example, by Porters’ five forces analysis, to study the forces of supplier, buyer, substitute, new entrant and rivalry competitions. Through this step, we can identify our strengths and weaknesses as a new fashion retailer.

c. SWOT

By using a performance/importance table, first sort out a list of factors that will affect the business (e.g. branding, quality, price, management, advertising, financial situation…etc) and rate the importance versus performance of each factor. Extract those importance areas that the company will be performing good (as the strengths), and the importance areas that the company is not doing good enough (as the weaknesses).

With the O&T from macro-analysis, and S&W from micro-analysis and performance/importance table, we could draw the SWOT table and have a big picture of the status of the new company. STP at the later stage could be made based on the elements in the table.

d. Market trend

Analyze the market trend in the clothing industry e.g. style of clothes (causal/ sporty/ formal..), type of garment, pattern, cutting, accessories on clothes and customer spending trend. All these findings could help to define a profitable positioning.

e. Market research

Conduct research of the key existing fashion retailer about their positioning and target segment. Buying behavior and purchase pattern of different segment of customers will have to be done according to e.g. geographic, demographic,...