Marketing Mix for Ted Baker

Mae Woelfle N1011985

Summative Assignment Individual Report.

Fashion Industry FASH1002

MARKETING MIX & ZARA CASE STUDY

Word count: 2722

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Content

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List of Figures Part A - Marketing Mix Identification of Ted Bakers marketing mix strategies with focus on place and promotion, analysing and suggesting improvements.

ABSTRACT. The aim of this report is to demonstrate and apply key principles of the fashion marketing mix and fashion business strategies in relation to different aspects of the current and future global fashion industry development.

p. 5

Company overview

p. 6

Place

p. 9

Promotion

p. 11

Conclusion

p. 12

Part B - Zara Case Study Research and analysis of Zara`s strategy

p. 13

Q1: Sourcing strategy

p. 14

Q2: Supply chain management

p. 15

Q3: Customer relationship management

p. 16

p. 22

Appendix References & Bibliography

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Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

List of Figures Fig.: 1

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Authors own, Ted Baker Store Nottingham Shoes, 2022

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Authors own, Ted Baker Store Nottingham New Collection, 2022

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Ted Baker, 2022. Logo. [illustration] Available at: https://www.pinterest.com/pin/174303448048323578/ [Accessed 18 May 2022].

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Authors own, Table of Ted baker finances, 2022. Available at: https://www.tedbakerplc.com/investor-relations/results-and-reports/2022 [Accessed 30 May 2022].

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Ted Baker, 2022. Stock. [image] Available at: https://www.tedbakerplc.com/investor-relations/share-price-data-charting/share-price-data-chart [Accessed 20 May 2022].

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Authors own, Market position map, 2022

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Ted Baker, 2022. Customer responds. [image] Available at: https://www.tedbakerplc.com/~/media/Files/T/Ted-Baker/ press-release/ted-cmd-outline-ir.pdf [Accessed 18 May 2022].

Fig.: 8

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Ted Baker, 2022. Our Values. [image] Available at: https://www.tedbakerplc.com/~/media/Files/T/Ted-Baker/press-release/ted-cmd-outline-ir.pdf [Accessed 18 May 2022].

Fig.: 9

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Hero, n.d. Ted Baker Store [image] Available at: https://www.usehero.com/customer-stories/ted-baker/> [Accessed 5 May 2022].

Fig.: 10

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Authors own, Selfridges, 2022

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Authors own, Ted Baker location map, 2022

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Authors own, Place SWOT, 2022

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Authors own, Nottingham Ted Baker store stairs, 2022

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Authors own, Nottingham Ted Baker store shoes, 2022

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Authors own, Ted Baker at John Lewis Nottingham, 2022

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Ted Baker, 2022. Website. [screenshot] Available at: https://www.tedbaker.com/uk [Accessed 23 May 2022].

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Instagram,2022. Ted Baker Shop. [screenshot] Available at: https://www.instagram.com/p/Cdscc5UsYvN/ [Accessed 23 May 2022].

Fig.: 18

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Innovation in Textiles, 2017. Digital textiles printing. [image] Available at: https://www.innovationintextiles.com/digital-textile-printing-a-focalpoint-theme-at-texprocess/ [Accessed 23 May 2022].

Fig.: 19

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LS:N, 2015. Smart fitting rooms. [image] Available at: https://www.lsnglobal.com/micro-trends/article/16876/smart-fitting-rooms [Accessed 23 May 2022].

Fig.: 20

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DETEGO, 2017. Smart mirror. [image] Available at: https://www.detego.com/retail_insights_en/retail-en/really-clever-the-smart-fitting-room-is-appreciated-by-customers-and-retailers/ [Accessed 23 May 2022].

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TikTok, 2022. @mrsrodial. [screenshot] Available at: https://www.tiktok.com/@mrsrodial [Accessed 23 May 2022].

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Mintel, 2021. [table] Available at: https://reports.mintel.com/display/1115471/?fromSearch=%3Ffilters.catego-

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Authors own, Kotlers communication model, 2022

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Authors own, DRIP Model, 2022

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Instagram, 2022. Hugo Boss. [image] Available at: https://www.instagram.com/boss/ [Accessed 29 May 2022].

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Authors own, Stansead Airport Ted Baker Store, 2022

Fig.: 42

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Zara, 2022. Logo. [image] Available at: https://de.wikipedia.org/wiki/Datei:Zara_Logo.svg [Accessed 14 May 2022].

Fig.: 43

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SCM Globe, 2020. Zara’s Unique Business Model. [image] Available at: https://www.scmglobe.com/zara-clothing-com-

Fig.: 44

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Authors own, Turkey versus Bangladesh, 2022

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Zara, 2022. Satin Fabric Products. [image] Available at: https://www.zara.com/uk/ [Accessed 17 May 2022].

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Authors own, Supply chain risks, 2022

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SCM Globe, 2020. Zara location and logistics. [image] Available at: https://www.scmglobe.com/zara-clothing-compa-

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Authors own, Zara Markdown, 2022

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Future Learn, n.d. Loyality Loop. [image] Available at: https://www.futurelearn.com/info/courses/understand-

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Facebook, 2022. Zara Care. [image] Available at: https://www.facebook.com/ZARACare// [Accessed 23 May 2022].

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Instagram, 2022. Comments. [image] Available at: https://www.instagram.com/zara/?hl=en [Accessed 23 May 2022].

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Retail week, 2022. Zara Pay & go. [image] Available at: https://www.retail-week.com/fashion/store-gallery-zara-unveils-

ted-baker-reveals-its-first-ever-advertising-campaign/2018110539795 [Accessed 28 May 2022].

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Drapers, 2021. Selfridges’s pre-loved wedding pop-up. [image] Available at: https://www.drapersonline.com/news/ first-look-resellfridges-the-wedding [Accessed 24 May 2022].

Fig.: 24

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Authors own, Circular Resale Model, 2022

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United Nations, 2022. SDG 12. [image] Available at: https://sdgs.un.org/goals/goal12 [Accessed 24 May 2022].

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Authors own, Tripple Bottom Line, 2022

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Authors own, Resale Facts, 2022

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Vinted, 2022. Ted Baker. [screenshot] Available at: https://www.vinted.co.uk/vetements?search_text=Ted+baker [Accessed 24 May 2022]

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Instagram,2022. Ted Baker Press Events. [screenshot] Available at: https://www.instagram.com/stories/highlights/17998648150440280/?hl=en [Accessed 24 May 2022].

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Ted Baker, 2022. Campaign. [image] Available at: https://www.tedbaker.com/uk/edited/garden-party-outfits-mens [Accessed 24 May 2022].

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Ted Baker, 2022. Campaign. [image] Available at: https://www.tedbaker.com/uk/edited/garden-party-outfits-mens [Accessed 24 May 2022].

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Ted Baker, 2022. Brand awareness. [image] Available at: https://www.tedbakerplc.com/~/media/Files/T/Ted-Baker/ press-release/ted-cmd-outline-ir.pdf [Accessed 28 May 2022].

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Authors own, AIDA model, 2022

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Ted Baker, 2022. E-mail newsletter from the 27 May 2022. [screenshot]

Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

Ted Baker, 2022. Brand awareness in Germany. [table] Available at: https://www.tedbakerplc.com/~/media/Files/T/ Ted-Baker/press-release/ted-cmd-outline-ir.pdf [Accessed 28 May 2022].

Ted Baker, 2022. Campaign. [image] Available at: https://www.tedbaker.com/uk/edited/mens-summer-eveningwear [Accessed 29 May 2022].

pany-supply-chain/ [Accessed 17 May 2022].

ny-supply-chain/ [Accessed 17 May 2022].

Good on you, 2022. Zara sustainability brand rating. [screenshot] Available at: https://directory.goodonyou.eco/brand/ zara [Accessed 17 May 2022].

ing-your-customers/0/steps/221481 [Accessed 20 May 2022].

Smart Insights, 2013. Diffusion of Innovation Model. [screenshot] Available at: https://www.smartinsights.com/marketing-planning/marketing-models/diffusion-innovation-model/ [Accessed 21 May 2022].

Trustpilot, 2022. Zara reviews. [screenshot] Available at: https://www.trustpilot.com/review/www.zara.com [Accessedv23 May 2022].

most-tech-driven-store-yet-with-scan-and-go-payments-and-automated-returns/7041641.article?authent=1 [Accessed

ry%3D124%26last_filter%3Dcategory&highlight#hit1 [Accessed 23 May 2022].

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FashionUnitedUK, 2018. Ted Baker Campaign. [image] Available at: https://fashionunited.uk/news/fashion/paint-it-ted-

23 May 2022].

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Zara, 2022. Size guide. [image] Available at: https://www.zara.com/uk/ [Accessed 23 May 2022].

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Pinterest, 2022. South Africa Ted Baker Store. [image] Available at: https://www.pinterest.de/pin/418271884138404484/

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Authors own, Ted Baker at John Lewis Nottingham, 2022

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Instagram,2022. Ted Baker. [screenshot] Available at: https://www.instagram.com/tedbaker/tagged/?hl=en [Accessed

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Twitter, 2022. Ted Baker. [screenshot] Available at: https://twitter.com/ted_baker [Accessed 24 May 2022].

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Instagram, 2022. Comments. [image] Available at: https://www.instagram.com/tedbaker/?hl=en [Accessed 24 May

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[Accessed 20 May 2022].

18 May 2022].

Ted Baker, 2022. Customer research. [image] Available at: https://www.tedbakerplc.com/~/media/Files/T/Ted-Baker/ press-release/ted-cmd-outline-ir.pdf [Accessed 18 May 2022].

Trustpilot, 2022. Ted Baker reviews. [screenshot] Available at: https://www.trustpilot.com/review/www.tedbaker.com [Accessed 24 May 2022].

2022].

Ted Baker, 2022. 26.May Report, 2022. Available at: https://www.tedbakerplc.com/investor-relations/results-and-reports/2022 [Accessed 30 May 2022].

Ted Baker, 2022. Product. [image] Available at: https://www.tedbaker.com/uk/c/womens/clothing/323 [Accessed 26May 2022].

Part A:

Marketing Mix

Fig.:3

TED BAKERS MARKETING MIX WITH FOCUS ON PLACE AND PROMOTION IDENTIFICATION, DEMONSTRATION AND SUGGESTIONS FOR APPROPRIATE DEVELOPMENT

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Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

Part A - Marketing Mix

Fig.:7

COMPANY OVERVIEW.

Fig.:6

Fig.:8

Aspirational

TED BAKER PLC. “NO ORDINARY DESIGNER LABEL” Ted Baker is a global lifestyle brand distributing across five continents “offering a wide range of collections including menswear, womenswear, accessories, fragrance, skinwear, footwear, eyewear and watches.” (Ted Baker, 2022).

Ultimately Ted Baker is a highly regarded British brand with a prompt brand recognition of 96% in the UK, with increasing awareness in the USA and Germany and strong perceptions of trust (21%), quality (23%), being worth buying (18%) and brand affinity (21%).

Their position in the market (Fig.:6) opened them the opportunity to create a broad offering luxury products at accessible prices. And while they don’t have to compete with the UK high street retailers, they are more resilient to the fastchanging consumer trends and focus on their iconic visual identity and a strong brand code known for: “britishness, optimism, joy, and delivering this with colour, print and often a quirky humorous personality.” (Ted Baker, 2022).

£

Fig.:9

Fig.:4

Group revenue

2022

2021

2020

£428.2m

£352.0m

£630.5m

UK and Europe Performance

5

Revenue (inc. licensing) Total retail revenue Store revenue E-commerce revenue Sales per square foot including commerce sales Sales per square foot excluding commerce sales Wholesale revenue

£297.4m £204.7m £99.7m £105.0m

£246.8m £181.9m £67.3m £114.6m

£422.6m £296.9m £202.3m £94.6m

£658

£1,043

£447

£244

£711

£77.6m

£52.4m

£106.7m

Own stores Concessions Outlets Partner stores/concessions Total

47 95 19 12 173

44 130 21 10 205

46 242 22 11 321

Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

£££

Mainstream

Fig.:5

The mission is “to be the most engaging British lifestlye brand, creating and celebrating the unexpected in the everyday. “ Customer research (Fig.: 7) found associations with the brand remain positive overall feeling good and getting a sense of confidence from wearing Ted Baker fashion products. Other things found were “to stand out and be complimented”, ”being comfortable while still being stylish”, “versatile, suited for a mix of occasions” and words like sophistication, elegance, smartness were used, proving the new design direction (Fig.:8) settles well with the loyal long-time customers.

As for the recent financial situation (Fig.:4) Rachel Osborne, Chief Executive Officer (2021) commented: “The Ted Baker brand has strengthened further, with the number of active customers growing to 1.2m by the end of the year”, despite the decrease of the group revenue by 44% to £352.0m (Nov. 2021) compared to £630.5m (Nov.2020) in the prior year, still majorly

impacted of COVID restrictions on trading globally.

“But e-commerce sales increased by 22.0% to £144.9m, supported by continued investment in digital business and significant improvements to the online customer journey.” (Osborne, 2021).

But even with the major impact of COVID and the following slowdown in the economy, there is a decrease in demand for Ted Baker’s products.

People have less disposable income to spend on non-essential items. Ted Baker is aware of the current market risks (Appendix, p. 20), carefully manages costs and monitors the board on performance also exploring “all UK government support schemes and take steps to reduce costs and protect cash flow.” (Ted Baker, 2020).

Part A - Marketing Mix

HQ Location LONDON

Fig.:11

j

PLACE.

“A “place” refers to how and where the fashion product will be available and sold” (Solomon, Mrad, p.342, 2022), and while retailing functions as a bridge between the producers (e.g. Ted Baker and their manufacturers) and the customers, offering time, space service and ownership value, different sales strategies reach different consumers. With a wide target group (Appendix, p. 18) Ted Baker can drive most sales with many different distribution channels with varying numbers of levels included (Solomon, Mrad, 2022).

MULTI-CHANNEL RETAILING:

TED BAKER LOCATIONS:

Currently Ted Baker follows a multi-channel approach, with 45 brands owned physical stores, 205 concession lines in various department stores, online on www.tedbaker.com or indirect e-commerce, like Asos, shipping nearly all over the world (Fig.:11). And while the goal is to build an omni-channel, with customers experiencing all touchpoints as one brand and not only separate channels, it is not an easy task to fulfil, to coordinate and strategically plan all individual factors to become one experience (Hansell, 2022).

Research shows “almost two thirds (62%) of UK consumers expect more convenience from brands.” (Wunderman Thompson Technology, 2021) and the future of retailing being prospected as followed:

“

• Decentralised - Existing beyond retail centres and the limits of bricks-and-mortar • Responsive - Agilely adapting to fluctuating demand or gaps in service • Low-impact - Tackling environmental footprints across supply chains

„

• Hyper-transparent - Using data to better inform and educate shoppers (Retail Future 2021 Report)

Being ahead of the game will be a huge advantage over competitors, given the already wide spread of store locations all over the world and international reach of Ted Baker, smaller investments in technology and more in-store experiences are a relatively easy task than to build more stores.

Considering the SWOT analysis (Fig.:12) focusing on Ted Bakers retailing strengths and weaknesses, there are several opportunities for them to enhance their “Place” factor in the Marketing Mix.

Ted Baker Stores Concesions, Outlets, ...

Websites and Shipping Options

“Ted Baker has 375 stores and concessions worldwide, comprising 92 in the UK, 81 in Europe, 95 in North America, 96 in the Middle East, Africa and Asia, and 11 in Australasia.”

(Ted Baker, 2022)

S

trengths

» worldwide avaible » easy return process » destinct shop environments » good customer service » wide retailing network » BNPL payment options (Customer Reviews 2022; Mintel, 2021)

W

eaknesses

» long shipping times » distrubtion of different fashion items to specifc stores/ online only » separation of distribution channels » lack of innovation (Grose, 2021)

O

pportunities

» resale » in-store experience » promotional events » advanced technology » linking social media with sales » loyalty schemes (Soloman, Mrad, 2022)

T

Fig.:12

hreats

» currency fluctuations » changing customer preferences » exposure of stakeholders to negative media » supplier & critical path agility » diversity & inclusion (Ted Baker, 2022)

Fig.:10

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Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

Part A - Marketing Mix

Website

Social Media

Fig.:13

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Fig.:15

Department store

Fig.:17

Store Fig.:14

PLACE.

Fig.:20

Fig.:19

Keeping the agility to be able to adapt to demands and gaps in service will be extremely important in today’s fast changing world (Business of Fashion, 2021). And although the change to the metaverse is too big of a step for a brand like Ted Baker, they should not fall behind.

Fig.:18

PREPARING THE PHYSICAL RETAIL ENVIRONMENT FOR THE FUTURE:

However, after lockdown many countries now enter a recovery phase and are “set to return to some level of normalcy with both physical stores and online channels being more closely integrated than ever before ... from learning what is on-trend to keeping in touch with brands, from selecting and purchasing products to sharing their shopping experience.”(Mintel, 2021).

They see the ability to connect with brand associates (both in-store and online) and have all digital options as normal and retailers need to acknowledge these demands as innovations in offline spaces to gain a competitive advantage.

Easy options for experiments with digital tools and technologies could be smart mirrors in stores (Fig.:19, 20), loyalty schemes with physical benefits by doing digital tasks (Fig.:21, 22) or simple product filters for social media. In addition to further possibilities of in-store embroidery personalisation or even an online tool to design your own unique Ted Baker scarf with digital fabric printing (Fig.:18).

Industry professionals predict that “brick-and-mortar stores will be used as galleries, showrooms and event spaces” (Howland, 2021) and brands offering additional incentives like one-off-a-kind experiences will emerge as winners in the race to success (Solomon, Mrad, 2022).

Fig.:21

With the massive investment in the online presence Ted Baker already took the right step into a decentralised retail future, integrated social media into their e-commerce system, but the separation of the physical retail and online is still quite noticeable (Ted Baker, 2022).

“WHICH OF THE FOLLOWING WOULD ENCOURAGE YOU TO START/ DO MORE SHIPPING VIA SOCIAL MEDIA?”

Fig.:22

Ted Baker already has a strong store image, creating an enjoyable, warm and creative atmosphere. All 5 characteristics: the exterior, interior, layout, design decoration and human variables play together to generate a feeling of intimacy and familiarity for their target customers (Nobbs, Fong and Baker, 2015).

Integrating some in-person experiences with detail capabilities in the stores will not need a lot of effort.

Fig.:13

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Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

101.2 million clothing items were sold by retailers in 60% of the retailers surveyed are now open to offering a range of second-hand items resale shops in the course of the year 2020. (Drapers,2021) to their customers.

188 million (Thread up, 2021) Etsy bougt the British consumers have tried reselling for the frist

Part A - Marketing Mix

time in 2021, compared to 36.2 million in 2020. (Thread up,2021)

PLACE.

Consumers reduce their carbon footprint

by 82%

when they buy used items instead of new ones.

(FashionUnited UK, 2021)

TESTING RESALE OPPORTUNITIES WITH POP-UP EVENTS: Since retail is a key role in the circular fashion economy selling millions of products every day in stores and online, consumers “are increasingly interested in the social and environmental impact of these products” (Blum, 2021), needing brands to rethink their opportunities and embrace new revenue streams with business models that are good for the planet, for people and price (Fig.:24-26).

Fig.:25

1. End consumer

2.

Garment reclaim

CIRCULAR RESALE MODEL Fig.:24

3.

Collection

Fig.:23

8

» good working condition » education and information » respecting peoples rights

65% of consumers --

P

rice

» paying living wage » no price pressure on manufacturer » cheaper resale prices (Blum,2021)

(Grose, 2021)

Fashion Industry Summative Assignment Report by Mae Woelfle N1011985

TRIPPLE BOTTOM LINE Fig.:26

For Ted Baker a recommence model also known as resale could be a big opportunity to invest in. Overall, Ted Bakers resale values are quite high compared to their competitors. On websites like Depop and Vinted the category “Ted Baker Coat” alone stocks over 500+ items still selling for around 200GBP in used conditions and up to 300 for new ones still with a tag attached (Fig.:28).

Especially rare colours or prints from past collections (Fig.:30) seem to be very popular. But also dresses, shoes and handbags get sold very quickly for unusual high prices.

33 million

The total number of consumers who bought second-hand apparel for the frist time in 2020.

(FashionUnited UK,2021)

And statistics like the research from Drapers Sustainability (2021) report state: ”Younger people are more likely to resell items online: 17% of 18 to 24-year-olds and 19% of 25 to 34-year-olds say this is their preferred channel of disposal.”

And “more than a third (37%) of consumers buy second-hand fashion online, rising to around half for shoppers aged under 35. Nearly half (45%) buy secondhand fashion in stores or markets.” The market is ready (Fig.:27) and retailers willing to adopt will also gain new customers and improve engagement with existing ones.

Resale attracts lots of different types of customers from all economic levels, people who could normally not afford a Ted Baker dress would be able to get one for special occasions. While loyal customers could get their hands on previous styles they missed but adore and might even pay more than the original retail price, or just find some treasures and save money, to use it for the next vacation (Narts, 2021).

To avoid lots of organisation and keep it at low-cost a pop-up store has a lot of benefits, reselling items for only a specific period at a specific location, maybe even travelling to different UK cities.

“The goal of a pop-up store is to create consumer interest and generate buzz.”

(Solomon, Mrad, 2022). It’s an efficient way to introduce and test the desirability of second-hand Ted Baker products and see what the customers thinks. It also emphasises a great customer experience and features an engaging form of shopping, maybe even connectable with some of the other ideas in this report and not much different to Ted Bakers previous PR events (Fig.: 29) or Selfridges “pre-loved pop-up event” (Drapers,2021), (Fig.:23).

“Not only can more circular business practices cut emissions, reduce primary resource use, minimise waste, and create a more accessible economy for all, but the growth of circular systems shows many recognise this can be a winning business formula, too.”

(Susan Harris, n.d.)

Fig.:30

(Ted Baker, 2021)

eople

in June. (Depop, 2021)

Fig.:29

» reduce waste » good quality » use of sustainable material » easy recycling » green transport » less overconsumption » transparence

P

$1.6 billion

5 to 7%

of resellable fashion is sold and bought on resale platforms. It means that there´s an estimated 2.1 trillon dollar of fashion items currently sitting unused in wardrobes. (Business of Fashion, 2021)

turn to second-hand fashion for many different reasons, whether it be their personal style, budget or commitment to a more sustainable lifestlye. (Mintel, 2022)

4.

Refurbish

lanet

second-hand fashion resale app Depop for

Fig.:28

5. Resale

P

Fig.:27

Part A - Marketing Mix

AIDA MODEL IN TED BAKER BRAND AWARENESS CONTEXT

A

PROMOTION.

Attention

Using design elements like strong imagery, colours and signature prints for campaign with story line for ATL advertisment.

I

D

Interest

Using messages, interactive objects and backround text while integrating the brand.

Desire

Integrating macrotrends for sustainability, technology and diversity, representing the current zeitgeist.

Fig.:33

A Action

Using marketing tools for calls for action, discounts, loyalty schemes, events, ...

RAISING THE BRAND AWARENESS : While consumers receive fashion communication often from “personal sources such as people around them, including friends, family salespeople and sometimes more importantly – people from the street” (Solomon, Mrad, 2022), the basic content for people to talk about must come from the brand itself.

To reach the goal of marketing by the “process of identifying and satisfying customer needs through the profitable supply of product and service benefits” (Jackson and Shaw,2001), it is necessary to manage the whole mix of elements, so their benefits are delivered in the most effective way possible.

Even if the product, price and place are as perfect as they can get, when the customer does not know they exist in the first place, the business will fail.

Ted Bakers last year’s market research (Fig.:32) clearly displays people have a very high awareness of the brand in the UK with 96%, although the people considering buying a garment rapidly decrease to only 49% and even less consumer currently shop with them. So, what is the problem?

The product, price, place or more likely the lack of promotional activities fitted for these types of customers. Ted Baker does not have any kind of advertisement, only a small visual campaign for their online presence, and some trials of promotional activities in the past (Hughes,2018).

Fig.:31

To reach their goals for the next quarter (Appendix, p. 20) to expand their market share in the US and Germany the major problem is to get them known. 65% of Germans don’t even know the brand exists, while Ted´s competitors have the same percentage of people “definitely considering” buying from them (Fig.:36).

Their current marketing concept, consisting mainly of BTL with direct emailing (Fig.:34), sales, CRM and some social media activity, is not designed to reach new customers at all (Travell, 2021).

Ted Baker made a good start with their first ever campaign “Paint it Ted” in 2018, but gave up to quickly (Fig.:35).

By analysing it with the AIDA model (Fig.:33) the start is always to get attention for example with a big above the line campaign for a new collection on billboards, in magazines and media, accessible for a large group of people to get the brand signature elements like their best-selling coat. Followed by the unique approach of painting to keep the interest (Heubel, 2019). Now the “advertisement convinces consumers that they want and desire the product or service because it will satisfy their needs.” (Jackson, 2022) and what could create more desire than to win an actual one-off-a-kind coat.

The last step will be a call to action, by doing something, purchasing the products, or just responding in some form, in this case the contribution to the competition.

Fig.:35

TED`S BRAND AWARENESS ACROSS DIFFERENT MARKETS (DEC 2021)

Fig.:34

BRAND AWARENESS FOR WOMENSWEAR IN GERMANY IN REALTION TO COMPETITORS:

Fig.:32

Fig.:36

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Part A - Marketing Mix

TED BAKERS COMMUNICATION: Suppose Ted Baker wants to create an advertisement campaign to raise brand awareness and make more people loyal customers, a clear message must be developed. As illustrated in Kotlers communication model (Fig.:38) this is actualy a more difficult task to do than said, since a lot of “noises” can disrupt the path from creating the message to the customer understanding what is meant.

PROMOTION.

Using a campaign to advertise the resale events as an example, location, age, gender and culture can completely change how the receiver (the people interested to come to one of the events) precepts the information and might rethink to actually spend time and money.

Fig.:37

KOTLERS COMMUNICATION MODEL

MESSAGE

Resale pop-up events information campaign

Fig.:38

SENDER: Ted Baker

ENCODING

• • • •

MEDIA:

Social Media Website Online adverts In store

FEEDBACK:

• Positive: more inclusion, bigger campaign • Negative: make changes, rethink interpretation and target group

NOISE

DECODING

RESPONSE:

RECEIVER: Customer

• Verbal: comments, reviews, • Non-Verbal: new customers and more sales & profits

However psychological research in fashion (Mair, 2018) shows people nowadays are more likely to keep an interest in advertising when the visuals support a more accurate and representative portrayal of the customers body image.

Making them ”feel better about themselves, more accepting of their changing bodies, more confident, less invisible and more valued by companies and by society as a whole” (Mair, p.44, 2018) and then as a result spend more money.

Competitors like Hugo Boss already included all kinds of bodies and faces in their latest campaigns (Fig.:40), resulting in a rapid increase of positive feedback, sales and PR attention (Boss, 2022).

And although an inclusive campaign can be tricky and should be handled with expertise and care, to not accidently offend somebody, every company needs to acknowledge “that not every woman is a six-foot-tall Blonde” and “that if a fashion brand wants to remain in the market, it should completely adapt to all changes in market trends and shifts in consumer behavior.” (Solomon, Mrad, p.78, 2022).

The campaign example as demonstrated in a DRIP model (Fig.:39) combines all aspects and represents the 3 A´s: attention, awareness and attraction, being a good opportunity to entertain, engage and inform customers (Jackson, 2022).

DRIP MODEL: TED BAKER CAMPAIGN EXAMPLE

D

Fig.:39

Ted Baker differentiates from competitors creating a resale pop up events and a inclusivity campaign to promote it.

ifferentiate

R I

Informing customers via billboards, social media, YouTube and online magazine advertisement and direct e-mails to already existing customers.

e-enforce

Communicating information of the events, available products, dates and locations while welcoming all people.

nform

P

The campaign promotes the events and builds interest and desire to buy while building a connection to the macrotrends of sustainability and diversity.

ersuade

Fig.:40

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Part A - Marketing Mix

CONCLUSION. Overall, Ted Baker already does a good job with their use of the marketing mix for the current fashion industry but need to improve fast to adapt to the future developments. At the moment they could gain a major advantage over their competitors and “use the buzz of being the first” (Lutkevich, 2021) to promote their brand awareness internationally.

Their price and product strategies are well established with a wide range of options and are only mentioned in positive customer feedback, while place and promotion are the two elements which have the most opportunities to grow Ted Bakers business for 2023.

SUMMARY OF ALL MENTIONED SUGGESTIONS: • • • • • • • •

Smart mirrors in changing rooms to let customers see other available options Loyalty scheme with digital tasks and physical benefits Social media filters and stickers for products, logos and events In store personalisation with embroidery Online tool to design own Ted Baker prints for scarves Resale pop-up events at different location Inform people of Ted Bakers sustainability strategy ATL campaign featuring a diverse set of people (ethnicities, body shapes, disabilities, …)

Fig.:41

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Part B:

Zara Case Study Fig.:42

ANALYSIS OF ZARAS POSITION IN THE MARKET OUTPERFORMING OTHER HIGH-STREET RETAILERS WITH FAST, ACCURATE AND HIGH FASHION DESIGNS AT AFFORDABLE PRICES.

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Part B - Zara Case Study

ZARA MANUFACTURING LOCATIONS

Fig.:43

Q1.

FROM THE CASE STUDY, OUTLINE THE PRIMARY SOURCING MODEL (MANUFACTURING TYPE) USED BY ZARA AND DISCUSS HOW THIS GIVES ZARA A COMPETITIVE ADVANTAGE OVER OTHER HIGH STREET RETAILERS AND SOURCING MODELS? CONSIDER THE DIFFERENT ASPECTS THAT MAKE UP COMPETITIVE ADVANTAGE IN SUPPLY CHAIN MANAGEMENT.

Zara is worldwide known for its famous quick product changes, trendiness and the short lead times. The concept of dropping new products every two weeks is only possible with a complex system of speeding up processes and a fast information flow.

The main reason for the agile and responsive supply chain is Zara’s “proximity sourcing” – also known as nearshoring (Amsterdam Standard, 2020). Integrated manufacturing and logistic systems, majority in european low wage countries as well as some nearby countries like Morocco and Turkey, combined with smart information technology, inform product decision and allow automated distribution.

Only the basic core items will be produced in China or Bangladesh, with longer lead time but at much lower cost (Fig.:44).

While other high-street retailers need to source, approve and get their fabrics produced, making profits from the volume of goods at low prices (Londrigan, Jenkins, 2018), Zara already has a large selection of raw fabrics preproduced, ready to be quickly dyed or printed and then transformed into new products (Fig.:45).

Reducing weeks of fabric approval, sampling and lead time, as well as waste and costs. Since the fabrics can be used or several different designs over several collections, bought in bulk in large MOQ with quantity discounts and do not require any special machinery or expertise to create complex designs.

Common problems like misunderstandings and cultural differences are eliminated by the use of advanced technology starting with CAD systems, transmitting the specs form the designers directly to the relevant machines. Making it fast and reliable by overstepping the often biggest problem, the human factor (The Manufacturer, 2016 ).

Extra time to compensate increased demands is already planned in the normal 4.5 day work week, so unpredictable circumstances do not cause any major disruptions (Fig.:43) and keep the whole process flexible for each week.

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Fig.:44

SOURCING FACTS TURKEY VERSUS BANGLADESH Turkey

Bangladesh

Production capacity

exported $13.36 billion in 2021

exported $23.99 billion in 2021

Labour cost (min. wage)

£277.66 per month

£13.72 per month

Transportation

10 days / 1 day by air

min. 20 days by sea

Expertise

denim but wide variety

all readymade garments

MOQ

low, starting at 100 - 300

high, starting at 1.000 - 10.000

Ethical Standards

high regulations

low standards and workers rights

FABRIC EXAMPLES

Fig.:45

Q2.

Part B - Zara Case Study RISKS IN THE SUPPLY CHAIN Macro-environment risks

WHAT CRITERIA DO FASHION INDUSTRY PROFESSIONALS LOOK FOR IN A SUPPLIER WHEN DECIDING WHERE TO PLACE AN ORDER FOR MANUFACTURING? FROM THE CASE STUDY, HOW DO ZARA BENEFIT FROM THESE CRITERIA IN ITS CURRENT SUPPLY CHAIN STRATEGY? CONSIDER THE BENEFITS AND FACTORS OF SUPPLY CHAIN MANAGEMENT AND THE RETAILER/SUPPLIER RELATIONSHIP

Fig.:46

potential downturns in the global economy critical shortage of raw materials political instability newly created regulations natural disasters

“The choice of suppliers shall be governed by principles of objectivity and transparency, combining the interest of the company in achieving the best conditions, with that of maintaining stable relations with ethical and responsible suppliers.”

(Inditex, Code of Conduct and Responsible Practices, 2012)

issues with partners changes from customers financial problems product related issues

When selecting a supplier, fashion industry professionals “look for the best value for money in terms of quality of the product, cost and speed of the production,” (Boardman, Parker-Strak & Henniger, p.131, 2020) by comparing and contrasting different competitors not only by price but also by quality assurance and ethical conditions for a successful long term relationship.

Internal operation risks

product development issues manufacturing delays logistic disruptions increased pressure on lead time

KEY FACTORS WHEN CHOOSING A SUPPLIER:

Functional support risks

legal, financial, IT and HR shortcomings lead to issues in compliance or information flow

Extended value chain risks

ILLUSTRATION OF ZARAS LOGISTICS AND LOCATIONS

Fig.:47

• Past performance and experience – a supplier needs to be reliable, producing as agreed in terms of quality and time. The more experience at manufacturing fashion garments the supplier has, the better (Boardman, Parker-Strak & Henniger, 2020). » For time pressured products Zara is working with their own factories, being in total control over processes and performances. Experience has shown the 4.5 day work week works best for them to respond to increased demands.

• Production capabilities – factory size, equipment and manpower need to be suitable for the needed quantities, room to expand to maintain timely service are essential to determine MOQ and max. production levels (Hansell, Jackson, 2022). » Due to the fact that the concept is to produce less quantity of a style but large amounts of different styles a wider selection of different machinery will be needed instead of large standardised production lines.

• Cost-competitiveness – pricing and costs will always be as important as the product itself. Customer expectations and demands need to be in balance with making profit for a successful business. » Zara prices items based on market demand, not the cost of manufacture. Short production with low quantities create a sense of urgency to buy, meaning Zara sells 85% of their items at full price and leaves only 10% annually unsold.

Making Zara more flexible in terms of price negotiation with suppliers (SCM Globe, 2020).

• Logistics and location – The factory’s location and transportation capabilities can have major effects. Depending on preferred transportation, connection to a harbour, airport or motorway are essential for speed. » “Raw material is sent by suppliers in Italy, Spain, Portugal and Greece withing 5 days of orders being placed to Zara’s manufacturing centre. Then finished garments leave the Cube and are transported by underground tunnels with high speed monorails to the Zara logistics hub in Zaragoza. And from there they deliver garments to stores worldwide in just a few days: China – 48 hrs; Europe – 24 hrs; Japan – 72 hrs; United States – 48 hrs. It uses trucks to deliver to stores in Europe and uses air freight to ship clothes to other markets.” (SCM Globe, 2020), (Fig.:47).

Fig.:48

SUSTAINABLITY • lack of transparency • minimal use of organic recycled fibres • no specific goals set to become more sustainable • minimal start of circular fashion program

by Inditex but not specifically for Zara • speed and design are more important than environmental factors

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• Ethical practices & policies – as a result from public “pressure to ensure the whole supply chain is adhering to ethical standards and the widespread media reporting that occurs when this is not the case” (Boardman, Parker-Strak & Henniger, p.133, 2020), retailers will conduct strict and unannounced audits before agreeing to work with any supplier. » Inditex (2022) calls their program: “We are collaborating to have a positive impact” but Zara overall scores at ethical rating websites like good on you (2022) a “Not good enough” failing at several categories due to a lack of information and transparency (Fig.: 48).

• Communication – communicating and understanding, taking instruction, but also for problem solving, transparency and trust are key factor when working in a team. Language barriers can be a great risk, but also cultural differences need to be taken into account (Londrigan, Jenkins, 2018). » Zara having factories in Spain and near countries will have less problems and with fixed regulations and instructions less misunderstandings.

Zara has a clear supply chain advantage over their high-street competitors, but will still evaluate the common risks (Fig.:46) and monitors the key factors for their offshore suppliers producing core items. The goal is and always will be to “develop and maintain strong & effective supplier relationship” (Hansell, Jackson, 2022), by listening and respecting the suppliers needs (Boardman, Parker-Strak & Henniger, 2020).

Part B - Zara Case Study

REFLECTING CUSTOMER JOURNEY

• making the customer enjoy the purchase by providing: » the right product » at the right time » at the right place » at the right price » at the right way to the right customer!

• reducing barriers and making regular purchases a pleasent experience, to skip consideration and evaluation steps before the buying action.

Q3.

FROM THE CASE STUDY, HOW DOES ZARA IDENTIFY ITS CUSTOMERS WANTS AND NEEDS AND KEEP THEIR CUSTOMER RETURNING TO THEM AND HOW DOES THE BRANDS CRM (CUSTOMER RELATIONSHIP MANAGEMENT) AND SUPPLY CHAIN STRATEGY HELP IT ACHIEVE THIS?

Trigger point

Zara`s combination of fast responds to trends and the model of build-up demand, limited availability and fast changes maximises the companies in-season selling, having “the highest net sales of the Inditex Group worldwide in 2021, amounting to just under 20 billion euros.” (Smith, 2022) And even though they do not use any advertisement, only use of mouth, their tactic to trick the customers into buying garments quickly at full price, leave them with an incredibly low rate of only 15% markdowns (Fig.:49) (Londrigan, Jenkins, 2018).

The constant changes are attractive for their loyal shoppers, finding new items every time they stop by, often while browsing through prime locations in high profile shopping areas, looking for interesting styles rather than searching something specific, perfectly fitting into the category of early adopters (Fig.:51). A common phrase on TikTok is: “Ladies - Don’t walk, run to Zara!” (@carolinemtzgr,2022).

Although Zara has many customers in a loyalty loop (Fig.:50), spending regularly a lot of money on the latest fashion without comparing the products to competitor or researching for other options, the loop can easily be broken when customers become upset about something.

According to 80% of Zara’s reviews on trust pilot (Fig.:52-54) and several complaints on their social media accounts there are currently a lot of weaknesses in Zara’s shopping experiences. From poor customer service, long queues and understaffed stores up to inconsistent sizes and damaged garments from online orders, more and more customers do not want to shop there again.

All these problems have “provoked a backlash among some shoppers on social media”, with the new “updated terms and conditions, stating that customers must now pay £1.95 to return clothing bought online,” (Drapers, 2022), balancing over-ordering and the rise of transportation costs, but “rather than fixing the problems of the reasons for the return on their end, they put the problem as a customer issue. 72% of all returns are due to sizing issues, and yet the website only displays the smallest sizes, only modelled on one person on one body type. How are consumers supposed to make the best sizing choice for them?” (@thethriftythinker, TikTok, 2022).

People understand the charge but see major problems in the execution of size irregulation, representation and information (Fig.:56).

Only the recently updated flagship store in Madrid is loved by all customers. Equipped with advanced changing room technology, by scanning RFID chips and automatic information on the mirror, departments sorted in sections and areas to sit down, customers travel there just to get the experience. (Fig.:55) Problem areas like the returns are made with handheld monitors to avoid long queues on the checkout. Journalists like Fiona Govan (2022) calling it the “biggest store in the world and it´s like stepping into the future”, maybe being exactly the trigger Zara needs to win all of the disengaged customers back.

EARLY ADOPTERS • enjoy change and newness • will pick up and wear fads • make innovations safe for early majority • willing to spend money • making trends acutally wearable, turning them into popuar styles

Zara Fig.:52

Fig.:51

Fig.:54

Fig.:52

Fig.:56

ZARA VS. OTHER RETAILER MARKDOWNS

Fig.:49

Fast Fashion Zara

Other European Apparel Retailer

US Apparel Retailer

15% of inventory at 15% markdown

30-40% of inventory at 30% markdown

50-60% of inventory at 40% markdown

Fig.:55

Fig.:53

15

Fig.:50

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Appendix : 16 4

FashionIndustry IndustrySummative SummativeAssigment Assignment Report Mae Woelfle N1011985 Fashion Report byby Mae Woelfle N1011985

Appendix

OBSERVATION. Fig.:10

every store has a different range of products often size 0,2,4 on display, other sizes must be asked for sorted by collections with suitable accessoires mix of clothing for different occasions with some variations

• • • •

window display showing full outfits of current collection mannequin in the centre of the room clothing on racks, jeans and t-shirts folded on tables in a visual presentation with matching accessories extra sections for handbags, jewellery table and shoe area

STAFF

• • • •

waiting behind the cashier desk, attentive and helpful when asked know what is currently in stock at the store package everthing neatly in paper and bag dressed in creative smart casual

EXPERIENCE

• • •

shop is always tidy, clothing perfectly neat open changing room doors when empty long bar to hand garments in changing room, small seat and full mirrors on both sides of the dressing room

PRESENTATION

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Fig.:58

RANGE

• • • •

Fig.:15

17-40 year old styled long hair and sophisticated make-up often with friends, boyfriend or husband wearing smart casual clothing

Fig.:3

Concessions Fig.:57

CUSTOMERS

• • • •

Stores

Fig.:41

Primary reseach trip to several Ted Baker stores in the UK including, Glasgow, Manchester, Oxford and Nottingham, at the airports London Heathrow and Stanstead, as well as several concession lines in department stores like Selfridges, House of Fraser and John Lewis from January until May 2022, but only for womenswear.

Appendix

CUSTOMER RESEACH

BY TED BAKER 2022.

Fig.:59

Fig.:60

Fig.:3

Fig.:60

Fig.:60

Fig.:60

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Appendix

CUSTOMER REVIEWS.

Fig.:3

There are lot of reviews although Ted Baker does not ask their customers to review anything. All comments on the company and the garments do come from the customers themselves, on all kinds of different channels: Tik Tok, Twitter, Facebook, Instagram, Youtube, review websites like Trustpilot, ...

Noticeable is that the majority of the comments are “excellent” (5 stars) and the others are “bad” (1 star) due to lost or wrong online orders, failed returns without receipt or extended international shipping time. All things that can happen occasionally.

EXAMPLES: Fig.:61

Fig.:59

Fig.:62

POSITVE THINGS MENTIONED:

NEGATIVE THINGS MENTIONED:

• • • • • • • • • • •

•

excellent in-store service replacment of faulty items fast responds website faults handled fast by customer service good quality worldwide shipping fast returns good resale value creative pattern, colours and prints good sizing guide additional e-mail receipt

• • • • • • •

website shows you everything even out of stock and no option to filter out. product faults no return without receipt delays in international shipping package tracking does not work strict replacement for faults policy order cancellation after checkout due to “Out of stock” wrong items send

MY PERSONAL REVIEW:

Fig.:63

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• Good customer service - Bought a dress in Glasgow, somebody forgot the security tag, I didn’t see it until back home, brought it to my local Ted Baker store and they removed it. Even repacked it in their packaging and apologies for the problems this made.

• Good size guide - Due to their own specific sizing system (0-6) everybody has to look at the size guide and find himself buying the perfect size without comparing size to normal wardrobe.

• Luxurious in store experience - Sale assistants always available to help, get sizes, colourways and give good advice if asked for.

Appendix

Fig.:3

TED BAKER PERFORMANCE REPORT 2022.

Newest Data from the Preliminary Results Announcement (26.05.2022) for the 52 weeks ended 29 January 2022 and Q1 trading update for the 12 weeks ending 22 April 2022.

TED`S ACHIEVEMENTS:

TED`S GROWTH STRATEGY:

Fig.:64

Fig.:64

CHANNEL PERFORMANCE:

Fig.:64

FY22 HIGHLIGHTS:

Rachel Osborne, Chief Executive Officer, commented: “That momentum has continued into the new year, supported by a steady return to the office and social events.

While we remain mindful of what is a challenging macro environment, we are well positioned for growth. The positive response to our SS22 collection and the recent launch of our new digital platform, supported by our strong brand, capital light strategy and well-established distribution channels give us confidence in Ted Baker’s future.”

Fig.:4

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Fig.:38

Appendix

PRODUCT.

PRICE.

Fig.:64

Fig.:3

PRICE RANGE IN WOMENSWEAR CLOTHING :

• • •

Current clothing prices range from £35 for basic cotton t-shirt to a standard of £150-295 for dresses and special outerwear for up to £425.

Prices depend on materials, fabric, lengths and level of detail.

Core items are always priced less than trend products.

Fig.:64

Fig.:65

SALES AND OUTLET:

•

• •

Outlet shops selling clothing form last season and garments with minor mistakes Regular discounts from 30% up to 70% off on website and via email message Permanent but always changing website outlet to sell deadstock with big markdowns Fig.:65

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