marketing assignment

Topics: Marketing, Brand management, Advertising Pages: 8 (1844 words) Published: December 30, 2014
Table of Contents

Introduction………….................................................................................................Page 3 Company Background…………………………………………………………….....Page 3 PESTLE Analysis……………………………………………………………………Page 3 – 5 SWOT Analysis……………………………………………………………………...Page 5 – 6 Segmentation Strategy……………………………………………………………….Page 6 – 7 Positioning Strategy………………………………………………………………….Page 7 Short Term Recommendations……………………………………………………….Page 7 - 8 Long Term Recommendations……………………………………………………….Page 8 Conclusion………………………………………………………………………....…Page 8 Reference List………………………………………………………………...………Page 9

Introduction
The fashion industry in Singapore has since seen its growth in recent years with major big Europe and U.S brands entering the market such as H&M, Karen Miller and Abercrombie & Fitch. With the influx of foreigners and tourists in recent years, there is more demand in international brands of apparels. Forever21 being one of the pioneer brands to have started its business in Singapore since 2004 has to continue to stay competitive. This report will identify Forever21’s position in the industry and recommendations for the brand to stay competitive.

Company Background
Forever21 is a large American chain of fashion apparels. It was founded by Korean immigrant; Don Chang and it remains as a family business till date. The company has had rocketed growth since its establishment. It has expanded into Singapore since 2004. The brand currently has a 3 level retail space at Somerset 313, 1 store in ION and another at Vivocity.

PESTLE Analysis
Factor
Impact of factor
Potential opportunity or threat
Political
- Trade agreements between U.S and Singapore
- Government regulations on levies on foreign labor

Mild threat
Economical
- Slowing economy
- Inflation
- Very competitive market
Moderate threat
Social
- Child labor issues
- Worker’s rights
Moderate threat
Technological
- Online shopping platform
- Social media influence
Significant opportunity
Legal
- Infringement and copyright issues
Potential threat
Environmental
- Environmental friendly issues
Opportunity
Political
Forever21’s business in Singapore relies on the trade agreements between Singapore and the U.S. Therefore; any political decisions that are detrimental between the two countries may affect the business. Secondly, the social trend in Singapore is that the locals do not want to work in the retail industry because of the long work hours and low wages; hence the retail industry employs a lot of foreign labor. The Singapore government has regulations on hiring foreigners; imposing levies, any changes to this regulation for example, increasing the levies may increase the manpower expenditure.

Economical
Since the economy is not doing so well at present time, consumers would try to minimize their spending. Inflation would also cause shoppers to spend lesser on fashion goods because increasing costs on necessities like transport and meals would leave them with less disposable income. The fashion industry is very competitive due to the many competitors in the market, especially local online blog shops that offers a even lower pricing compared to Forever21; these blog shops do not a physical store, hence they are able to offer lower pricing from rental savings.

Social
Increasing awareness about child labor issues will cause customers to boycott the brand. Some similar companies offering low price points for their apparels has been heavily scrutinized for using cheap child labor to be able to provide low prices. One example is the Primark controversy; Primark is a big retail company for apparels at low prices. In 2008, BBC news reported Primark for using child labor in India to manufacture its apparels. This has caused protests and boycott in Primark. In 2001, Forever21 faced lawsuits for violating labor laws, its employees claimed to have received less...
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