Que Fashions (Qf)
Student’s Name
Institutional Affiliation
Que Fashions (Qf)
Simply elegant!
Table of Contents
Sustainable Competitive Advantage. 5
Market Segmentation, Targeting, Differentiation and Positioning. 11
Firm Identification
Que Fashions will be a one-stop child-wear shop that will be involved in designing, development, marketing, and sale of comfortable, affordable, and stylish kids’ outfits and footwear.
The products will involve clothing and shoes for kids between the ages of up to eight years.
Before developing the products, our research department will pay keen attention to the different cultures across the world, tailoring products that are not only stylish but also mindful and preservative of diverse cultural heritage.
Product Research, development, and marketing will be our main pillars as we endeavor to satisfy every child’s dream through our market positioning statement,” simply elegant!”
Reason for Establishment of Que Fashions
Que Fashions’ goal is to bring a unique shopping experience to parents of young children by being the leading one-stop destination for affordable, stylish, and elegant clothing and footwear for kids. Additionally, this will be the premier culture-centric fashion brand world.
Sustainable Competitive Advantage
Already, numerous companies are involved in the production of child-wear clothing and footwear. However, Que Fashions will seek to gain competitive advantage by optimizing innovation, branding, scope, scale, channels, and people for its products and services.
Branding
Que fashions will strive to create a superior image among its target customers, especially parents and kids. As a company, we believe building a must-have mentality will give us an edge over our competitors, enabling us to employ different pricing mechanisms.
Innovation
Our manufacturing segment will work collaboratively with the product research and development team to discover new products that have several distinct features separate from those of conventional competing products – features that stir up emotion and desire among consumers.
Scope
Que Fashions will not just design, develop, and sell kids’ clothing and footwear; it will also endear to walk with parents by educating them on matters surrounding kids’ health and apparel. Through understanding the benefits that go beyond conventional manufacturing, we believe customer loyalty will be enhanced and sustained.
Scale
Our business model will involve designing, developing, and producing clothes and footwear in large volumes to cater to a vast stretch of consumers. As we increase our scale of operations, we hope to obtain economies of scale through production cost advantages.
Channels
To reach a more extensive market base that traverses different cities, countries, and continents, we will use channels that optimize the sale of our products and services irrespective of geographical settings. More so, we will establish retail stores, online stores, and retail subsidiary outlets to market and sell our products.
People
Que Fashions will work with employees and partners who share in its vision of fulfilling every child’s dream, every day, everywhere. Our working conditions, compensation schemes, and operations will be focused on ensuring that our employees, partners, and customers feel valued and engaged.
Advantages of this competitive Model
To establish a superior brand presence that will increase revenues and profits, our company will blend its operations on innovation, branding, scope, channels, scale, and people.
Innovation
Compared to other players in the market, product development and innovation will be our top pillar. We will seek to fulfill our mission by investing in the latest apparel and footwear production technologies. This way, we will address both the current needs and future needs of our clients through responsible and sustainable productions.
Branding
Que Fashions branding will set its products apart in a unique way to those of our competitors in the market. This way, the value of our products will be distinctly mapped out to our clients. Positive brand perception will be an advantage even as we seek to introduce new products in the market.
Scope
Unlike other market players who are majorly involved in either production or sale of child-wear apparel, our range will go further. It will entail proper customer education and sensitization on the value of our products to culture.
Scale
Simply, Que Fashions will strive to produce more units for different consumer base at a lower cost per unit. This low cost will translate to cost-effectiveness and more revenue compared to our competitors.
Channels
Some of the players in the child-wear apparel industry still rely heavily on traditional brick and mortar as channels for the sale of their products. Que Fashions retail, online and retail outlet subsidiaries will enable us to reach a more extensive consumer base, thereby selling more units.
People
People are the driving force that can make a business fail or succeed. By valuing and treating our partners, employees, and customers with dignity, we intend to benefit from their rich expertise. We believe in successful internal crowd-sourcing, an aspect most companies won’t realize.
This model will contribute to a successful enterprise compared to our competitors because of the following reasons. First, it will be based on people and innovation. With the right team, Que Fashions will succeed. Also, creating a reputable brand, maximizing on scope and scale of production while advancingly tapping into the unlimited potential of online markets, will be distinctively beneficial to the company.
Mission and Objectives
Que Fashions Mission will be ‘’To bring joy to every child and a smile on every parent, every day, everywhere.”
This is motivated by the fact that the company values every child and every parent every day and therefore focuses on dressing them in styles that reflect the rich cultural diversity, lifestyles, and personalities.
Objectives
To fulfill this mission, the company will seek to:
- Continuously provide simple but elegant and quality cloth-line and footwear that has a touch of culture for kids
- Professionally handle our customers, employees, and partners with dignity
- Establish a market brand that entails short-term and long-term profitability, growth, and success.
- Support the growth and development of the cloth-line and footwear industry in the different parts of the world where it will operate.
- Contribute positively to our communities and environment through sustainable production technological processes and corporate social responsibility.
Situation Analysis (SWOT)
Dynamic Business environments have a significant implication on both existing and new businesses. Developing a solid awareness of this environment through such tools as SWOT can help with both the strategic planning and management of a portfolio leading to a successful investment.
The SWOT Analysis tool will inform the strengths, weaknesses, opportunities, and threats which Que Fashions can utilize to succeed. This tool will also provide a balanced scorecard on the company’s future possibilities.
Strengths
Strengths are internal factors that give a company an edge over its competitors. The following will be our company’s strengths;
Core Brand
The marketing strategies will focus on creating Que Fashions as the strongest or one of the most reliable labels in the kid’s cloth-line and footwear industry. We will strive to create a reputable brand that, whenever a parent thinks of purchasing clothes or footwear for their kids, Que Fashions will be the leading destination in their minds.
Superior Marketing
The company will aggressively and strategically market its products through exceptional marketing strategies that stand above ordinary standards.
Wide Portfolio
Besides creating a top brand as Que Fashions, the company will equally invest in a wide range of other related products along the cloth-line and footwear industry. Each of the products will be uniquely designed to the needs of our consumers.
Low Production Cost
By venturing into viable and scalable operations, the company will benefit from cost-advantages related to production. The economies of scale will be a significant incentive.
People
The company will draw on the expertise of highly qualified personnel for its product research, innovation, sales, and marketing. This will ensure a cost-effective operation that leads to more revenues and higher profits for the company.
Cultural and Environmental Consciousness
The company will seek to responsibly and sustainably produce its products being mindful of the environment. This will also be our unique Corporate social responsibility.
Weaknesses
These are the negative internal factors that may likely hinder it from achieving its objectives and mission. They will include:
Unequal Working Conditions
While the company will strive to observe equity and fairness among all employees, there may be continental variations in compensation, which is also determined by the standards of living in different countries. This variation may impede the achievement of some company objectives.
Employee Attrition
With the world turning into a global village with thousands of opportunities, employees tend to move from one job to another. This may be a challenge as high staff turnover can kill employee morale and increase training costs for the company
Cultural Variation
While the company will strive to adhere to cultural diversity in incorporating the retail subsidiaries, this may not be easy as different retail enterprises have different cultural orientations, which may be difficult to streamline.
Opportunities
These are favorable external factors that will give the company a comparative competitive advantage over others. They will include
Global Market
By tapping into the infinite channels of online stores and subsidiary retails, the company will serve customers beyond its geographical limitations.
Increased Disposable Incomes
With the rising population and emphasis on diversification among investors, there is a possibility of higher disposable incomes, which could lead to higher propensity in spending among consumers. This will be a potential market which the company will tap into.
Innovative Technology
By investing in new and advanced technology, this will present opportunities for the company to pursue differentiated pricing measures. This will also enable Que Fashions to meet the pricing needs of existing customers as it seeks other value-based propositions in other markets.
International Trade Policies
World trade organizations are continually working on tax and policy measures for fair competition. New tax and policies could favor the operation of the company leading to efficient services and higher sales.
Economic Recovery
While current pandemics and natural disasters such as COVID-19 have adversely affected businesses globally, an uptick after such challenges can present a broad market for the company to sell its products.
Unrivaled Expertise
Our company’s core expertise can be a massive leap in the operations of the company as compared to our rivals. When well utilized, the company will gain significant mileage in kids’ cloth-line and footwear industry globally.
Threats
External factors which can affect the company negatively. Usually, the company has no influence on this factor. Some of the dangers which could affect the company include;
Risk of Duplication
With the company operating on an international scale, there could be risks associated with counterfeiting of our products, most of which could be sold at lower market prices.
Increase in competition
With the company already established as a reputable brand, there could be threats caused by other unexpected market entrants.
Unstable Pricing
Pricing mechanisms for our products could be widely affected by fluctuating foreign currency rates caused by volatile financial currencies worldwide.
Strategic Alliance
While the company could establish itself as a remarkable brand in kids’ apparel, the emergence of regional mergers can have an impact on the market share that dominated our company.
Market Segmentation, Targeting, Differentiation, and Positioning
Market Segmentation
Segmentation involves dividing the market of potential customers into segments based on different features. The customers in every part have common characteristics such as interests, needs or are in one geographical setting (Camilleri, 2018)
Que Fashions will segment its market based on four parameters. This will be according to customer demography, geography, psychography, and behavioral patterns.
Demographically, the company will use consumers’ age ranging from zero to eight years, their gender as well as their parent’s purchasing abilities. Products will be categorized as for boys or girls, with each having a different age range. This will allow our customers to be served according to their specific needs.
For geographical segmentation, the company will operate globally. Generally, operations will be mainly in Europe, Asia, Africa, and Australia. This will be undertaken with a full understanding that different continents, countries, cities, and people have their own cultures and style when it comes to clothing and footwear. Products will be launched to serve the specific needs of the customer according to their geographical mapping.
Psychographic segmentation will involve our company delivering products that fulfill the specific interest and meets the standards of each customer. Products will, therefore, be tailored as per the customers’ lifestyle needs and personalities.
Behavioral segmentation for the consumers will address the different behavior patterns of our customers. Our brand will target parents of children aged between zero and eight years and who have a strong taste for superior brands with a feeling of culture.
Target Marketing
Que Fashions will target consumer parents of kids between the ages of up to eight. A special touch of cultures around the world will be incorporated to ensure cultural diversity and heritage are ingrained in kids’ outfits. Generally, the company will also target consumers to form both online and offline markets.
The first category will be clothing and footwear products for new-born children aged zero to four weeks. The outcomes for this category will be designed to ensure they are cossy and adhere to the different environmental conditions of this group. The second group will be infants between four weeks and one year, followed by toddlers aged twelve and twenty-four months, preschoolers aged two to five years, and school-aged kids up to eight years. Each of these categories will have supplements that can be used as training tools for kids dressing skills. Such a product may include visual charts for kids.
Differentiation
Our company’s market differentiation strategy will seek to establish it as the premier children’s cloth-line and footwear company. This will take three a three-dimensional approach of pricing, product, and organization.
On pricing, the company will employ two main pricing mechanisms for its products; value-based pricing and premium-based pricing. Value-pricing will be set in segments due to the customer’s perceived value of our products, while premium prices will seek to distinguish our products as superior compared to other brands.
When considering product differentiation, innovation will be our top factor. The company will ensure that custom-made products address the specific lifestyles and personalities of consumers. In understanding new trends and customer needs, Que Fashions will be the leading producer of new products. Through this approach, we project increased demand for our products as consumers rush to be among the first to buy new products.
Organizational differentiation will focus on establishing our brand as the premier go-to fountain for kids’ cloth-line and footwear.
Positioning
Market positioning will be essential in setting up our brand as a top destination compared to our competitors. With our market positioning statement being ‘’To bring joy to every child and a smile to every parent’’, consumers who will want to bring joy to their children and a smile on their faces will choose Que fashion products over those of our competitors.
Marketing Mix
The marketing mix involves a company using different strategies and tactics to achieve its mission with a focus on Product, Place, Price, and promotion. (Birnik, 2007). The marketing mix determines the profitability and influences the growth decision of the firm.
Segment 1 (Segmentation)
Product Strategy – The company will segment its products through product assortment involving a higher number and type of products that stores will display for purchase by consumers. Availing more products will present our consumer base with a broad range of choices.
Promotion strategy – Sales promotion will be used to improve sales in markets with low sales. This will be a regular but short-term tactic as the company seeks to penetrate new markets and build a strong brand.
Price Strategy – The company will also engage in penetration pricing to explore new markets. Here, it will seek to offer the possible list price for a high quality of our products to attract new customers and gain more sales.
Place (Distribution Strategy) – the company will partition its market according to the various geographical settings. The products for each of the target customers in these locations will be unique to satisfy their lifestyle as well as personality needs.
Segment 2 (Targeting)
Product Strategy – Our company will primarily target parents of kids between the ages of zero and eight years. The range of these products will be varied to cater for the needs of both female and male children.
Promotion strategy – The company will use separate campaign strategies to harness the market potential of varying market segments.
Price Strategy – The company will, in some instances, provide discounts to encourage a specific volume of purchases from different consumers.
Place (Distribution Strategy) – being a global brand, the company will focus on delivering value across contracted subsidiary outlets worldwide.
Segment 3 (Differentiation and Positioning)
Product Strategy – our products will be unique as the company seeks to ingrain a touch of culture on both cloth-line as well as footwear, something that our competitors cannot easily replicate.
Promotion strategy – the company, will undertake direct marketing for pre-selected consumer segments for our products.
Price Strategy – the company will also provide allowance pricing as a reward to customers for promoting the use of our products.
Place (Distribution Strategy) – Superior logistics will be used to create and improve value by ensuring reliability in the availability of our products.
References
Birnik, A., & Bowman, C. (2007). Marketing mix standardization in multinational corporations: a review of the evidence. International Journal of Management Reviews, 9(4), 303-324
Camilleri, M. A. (2018). Market segmentation, targeting, and positioning. In Travel marketing, tourism economics, and the airline product (pp. 69-83). Springer, Cham.