Business organizations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they could lose their customers and the organization could not exist. The purpose of the business organization is to fulfill the needs and wants of the customers. At the same time, build the right relationships with customers in every country of the company share of a common goal, perhaps the biggest challenge is to identify the right customers.
In most cases, the right customers is the best for the company’s customers, although that is not a “right customer” suitable for use in all institutions, but there is three step process to attractive identity can support clients, and allows institutions to establish with good relationship. This three-step process can be known as recognition, target customers to adopt and adapt. In more widely-used marketing terms, it includes segmentation, targeting and positioning. Tops is the fast fashion brand for women of the commercial miracle.
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Tops is the United Kingdom’s second largest retailer. Tops guide of high street fashion of the Arcadia Group which is the leading British apparel retailer. Tops is a famous branded product which has known to Europe and then to Asia. In Asia, it has a considerable number of Tops fans. Every week, Tops has 100000 new products on the shelves. Tops store sales of products are covering every aspect that you can think of, from fur coats to short coats to a wide variety of accessories such as bags, bracelets, underwear, cosmetics and even toys.
Tops now has 309 outlets in the I-J fashion store, including the world’s largest fashion store in Loon’s Oxford Circus Tops a department store, every week attracts 200,000 consumers to patronize. Besides, Tops also buy in products from emerging brands and sell them too. The designs that suit with the current indecency geared towards teenagers and young adults make this company more relevant and attractive to the young people.
Main Report First Part Market Segmentation For the segmentation market of Tops, this process is to confirm that the group consumers who will choose or crazy about the brand, and then set the market strategy to attract more buyers. Tops has to subdivide a large homogeneous market segment of Upper, Upper-Middle & Middle. Although customer are the same age but is different in many other ways, marketers are often to be more focus on share a set of values and experience. Occasionally, this market segments Just the cost common and most loyal customer of Tops.
Tops also targeting the young people such as teenagers or office worker because they know that young people will attract by new fashion and the elderly did not care about fashion. Besides, young people have become important spender, they are more impulsive when facing this kind of problem, they will buy things that they want but not they are really need them, it shows that human being have unlimited wants. For the demographic segmentation of the Tops, the target customers are women and their average age is between 18 years old until 35 years old. This segments clearly shows that the rand only attracting to young people.
In addition, the income range for this brand is from $10,000 to $ 50,000 per year. People on a budget that target customers are young fashion-conscious. Source: Tops Final Report For the cryptographic segmentation, VAL’S framework shows that there are 8 segments including innovators, thinkers, achievers, experiences, believers, strives, makers and survivors. However, achievers and experiences both of this two following segments are targeting by Tops. Experiences to express through motivation, consumers are not only young and they are also enthusiastic and impulsive personality.
This means that their purchases make known as focus on looking good stuff. Achievers are success to make the goals or target oriented lifestyle in life. Image is very important for achievers, they support to build of credibility and product demonstrations successful peers services. Source: http://www. strategicbusinessinsights. Com Market Targeting Target market segmentation is an important process in which must consider the market factors attractiveness and competitive position. The target customer of Tops is targeting for the 50 percent of urban area, they also using e-commerce to target customers and suppliers.
Successful of e-commerce site for Tops is retrofitting the in-store experience that customer has fallen in love , then using the business experience that the company has accumulated for many years to embellish it to attract and target more customer. Most of the customers of Tops are between 18 to 35 years old. Besides that, Tops also targeting for the young people who like bibbing, clubbing and have a sense of fun. In addition, Tops based on their market potential, they will target the white collar workers for the age between 24 to 40 years old.
For attracting more customers, Tops will emphasize and quire the most fashionable and trendy for their clothing and others. When the retailer keeps the reputation for fashionable in business, the marketer has to maintain the loyal customer. For making estimate of market segment, the segment structural attractiveness will consists of threat substitute products, threat of new entrants, the power of buyers and suppliers and competitive rivalry this five porter forces. Threat of substitute products for Tops is their outfit for women is still existing industry giants that hard to beat by others competitors although it is high quality.
The threat of the new entrants for Tops is the customers are loyalty to the current brands. The bargaining power of buyers for Tops is low and also the product is high in quality and with reasonable price. In addition, the bargaining power of suppliers for Tops will be the suppliers are relies on consumers and they are easily replaced by others suppliers. The competitive rivalry for Tops is the competing globally due to online retailer and also researching to obtain competitive advantage.
According to this Tops market report, most of the women are interesting to buy outerwear because they are attracting of the high quality of outerwear. Source: Fashion Angel Market Report Lastly, the targeting for Tops of the income bracket is between POKER,OHO to PACKER,OHO. Market positioning Tops is recognizes around the globe and it is well build brand worldwide. The name Tops itself is a trademark thus making any copying and piracy illegal upon Tops. It is the registered trademark in number of counties in the world.
Besides, the company strongly emphasize on its Production and Marketing, Research and Development and Designing departments to gain a competitive edge and build a positive position in consumer’s mind. The place the product that occupies in nonusers’ mind is comparative to compete products. It defined as the basis of important attributes. Nowadays, Tops has already nine brands and every single one is positioned in a different way and different space. Tops also have to capture the mind share of their customer include their loyalty, trust and hearts before they have success to win the market share.
For branding, The slogan of Tops will be We strive for integrity, dialogue, transparency, excellence and innovation. For unique selling proposition, Tops has presents the factor or consideration that their products or services is unique from and better than other intentions. Tops comes up with their own slogan and unique selling proposition, there have been few of competitors who have followed suit, their unique selling proposition is offering a wide range of fashionable, young, trendy and unique clothing at affordable price, the competitors such as GAP, H, EZRA and so on.
Tops will give their customer the feel and vibe that the place is young, hip and trendy. In addition, for stay ahead of the reputation, Tops is creating the online store to give the customer more convenience to buy products. Tops also have an impressive Faceable page. Tops has stay one step ahead by embracing the technology around them and appealing to young people. Moreover, Tops has increasingly been faced with many challenges as a result of changing global business environments which has brought about competition among various firms.
For the competitive advantage, the brand of Tops is not to imitate from other the fashion brand in the world, the owner of Tops has already brought the copyright. Tops has shortened the shipping time, the average of the shipping time is approximately three weeks. Tops has about 15 to 20 new model per year. In contrast, ordinary brand shipments entire process needs about 4 to 6 months, a year generally only release two collections. Tops also produce high quality clothes and others, they are not using low quality fabric and material to produce outfit to reduce their reputation.
The average customer of Tops will be 85 percent, it is more than others fashion brand. Customers will often shop at Tops approximately 17 times a year on average, only 4 times for other branding. Only 13 percent of the average quarterly clothes need or sell at a discount, compare with 5 percent of other brands. Lastly, Tops headquarters warehouse of all the clothes will not stay more than 5 days, every week the shop will towards the headquarters to replenish the product, the inventory turnover rate is 3 to 4 times that higher than other brands.
Positioning Map Source: Andrew Golden Design Market Report Second Part For 4 As marketing mix, it includes product, price, place and promotion. Product refers to tangible and intangible attributes that a seller offers to the potential buyer, it exits to satisfy customer needs. A product also includes intangible or unobservable product attributes especially after sales service. The product becomes customer alee in marketing mix of Tops is produce good quality in fashion clothing and others, many customer is only admire this brand but also for the good quality, it also build trustworthy between customers and seller.
Besides, Tops has often repeat the same design over several, sometime they also produce same garment but in a different color , and make it into a mini collection, they have made the best market research that most of the customer are keen on the mini collection of Tops. Tops has a unique iconic logo, when the customer is looking for or shop at Tops, they will easily to find Tops by seeing the logo. The tags of Tops are always similarly style to the logo, even the paper bags also creating with the same style, it makes the customers feel more proud and high standard looking when carrying the paper bags.
Price must reflect product value and satisfaction generated. All organizations must decide the price that the customers are willing to pay for the product or service which reflects the position. The price becomes cost to the customer in marketing mix is selling the average price for approximately thirty five pounds in I-J, therefore, costs that vary with the number of customers. Tops is usually positioned in the middle of the market with higher than their high quality of the products to pay close attention to detail over other brands.
In addition, when the customer shop at Tops, they prefer put items that go together next to each other so buying an outfit rather than one item is made easier. Besides, Tops has created their membership card, they show loyalty to their own brand and if the customer is one of the members of the Tops, the customer might get a discount when buying outfit. Place is the way of getting the products to the consumer. Also now as the marketing channel that distributes the products to the final consumer. It must create convenience for the customer but also could constitute additional cost to the marketer.
For the place becomes convenience in marketing mix, I would like to explain for Tops stores are located in a large city. Tops has 300 stores in United Kingdom and they have create an online store. It is convenient for customer to buy product wherever is in home or outside. Besides that, Tops also provided home delivery service, they make it easy for their customers and also they can earn more profit for their business. Tops is always selling out their products so that their customer can buy and try on their different items.
Lastly, their store are often positioned near other competitor brands such as UNIQUE, H and others to give consumer easily to compare quality, choice and price to obtain further sales. Promotion represents the various aspects of marketing communication. It means where the organization communicates with their target markets the benefits and characteristics of the products and services. Promotion serves to inform, raise awareness and initiate purchase action. For the promotion becomes to immunization in the marketing mix, Tops has advertise through the internet.
Nowadays, Tops has realized that social networking is becoming even popular and started using Faceable or Mainstream to extensive their advertising strategy. Besides, Tops likes to promote We love student’ this event, it shows that they encourage students to shop and buy their product as they offer 10% to 20% of discounts and sometimes Tops also has seasonal sales which all generate brand loyalty therefore to extend their future sales. Recommendation For the recommendation of the Tops, Tops has made good on its promise to eve aggressively for the consumer behavior.
Consumer behavior is also known as the marketer created a better environment for its customers. I will recommend Tops to use for the 5 senses of technique, using scents and music to excite the consumers. Besides, staff of the month award of incentives could help the staff to strive for excellence. It is also the best way to improve the efficiency of the employees. For the consumer behavior, culture and sensitivity differences have to consider that taken by Tops for different country or different places.
In addition, reconsidering team of Tops outfitters have to catch up with current news so that not to purchase clothes because it might lead to another controversy. Conclusion As the conclusion for the first part of the main report, I will explain on how Tops focus on customer strategy to carry out a customer-centered strategy for their products and services. Besides, STEP strategy will be included in the first part of the customer-focused strategies. For the market segmentation, Tops will be divided into two groups of segmentation such as demographic segmentation and cryptographic segmentation.
Demographic segmentation will be explained on how Tops divided the market into groups based on variables. Cryptographic will be explained on how Tops divide their buyers into different groups. Secondly, market targeting will be the second market strategy, Tops will evaluating each segment’s attractiveness and selecting one or more segment to enter, and they also will using the right method to target their customer. Market Positioning is represents on how Tops arrange for their product to occupy a desirable and unique place and also discussing on how Tops build their mind share.