Introduction
Topshop claims a stake as one of the top retail brands in the field of fashion. The brand is based in the United Kingdom, and it is an Arcadia Group’s central brand. Topshop started off from humble beginnings in 1964 and has grown to be a trendsetter across the world (Topshop USA Website). Internalization of Topshop store’s business was prompted by the need to explore new markets. However, such a kind of expansion poses problems for the brand since the company has to embrace various cultures and still uphold a congruous brand image. On the other hand, internalization heightens the exposure of producers, consumers and even suppliers of Topshop. Moreover, the fashion industry often involves pressure since companies have to keep up with the most current trends in fashion and Topshop has been adept in this respect (Durland et al. 1). The brand emerges to be a favorite for women since it caters for fashion accessories and apparels that are biased to the female customers. With the marketing strategies employed by Topshop together with its marketing mix, the future of the retail brand is set to flourish. Marketing mix refers to the requisite formula of achieving effectual marketing and takes into account the famous four P’s: product, price, place and promotion. In this context, the Topshop store in Los Angeles will be the major spot of focus.
1. Product
Differentiating a product from the competitors is overly important in gaining market share is a given market. Topshop experiences stiff competition from retailer companies such as Zara and Forever 21. However, Topshop manages to differentiate its products from these competitors through the kind of branding it uses. The target market of Topshop involves young people between the age of fifteen and thirty. More specifically, Topshop store’s market niche involves young women with clubbing preferences and generally, fun lovers. Moreover, Topshop takes advantage of the young people’s urge to appear trendy and fashionable. The target market of Topshop has a strong liking for fashion magazines. The branding of the company takes care of celebrities, fashion taste setters, students and even professionals (Fox 1).
In fact, during my childhood years, I did not care much about where I shopped. I recall shopping in retail stores such as Mini Boden or GAP, depending on their proximity. However, this changed when I was 15 years old since my preferences and fashion sense had started developing. I looked for a fashion shop that would grant me a satisfactory sense of fashion through the products they had to offer and I settled at Topshop. Since then, I have been a loyal customer due to the “cool” products they have on offer.
Given the myriad of customers served by Topshop, its uniqueness is unquestionable. The branding of the product of Topshop is constructed in such a manner that everybody finds something of his or her interest in the Topshop store. Besides, the branding advocates individuality of all customers. For instance, the sub-brands that facilitate individuality of the customers in Topshop include ski-wear, tall and petite, boutique, mainline, unique, premium and maternity (INITIALS Marketing 2). Evidently, the emphasis on branding is put on the female customers. It is because of the disparity in the purchasing patterns of women as compared to their male counterparts. According to Lewis, women account for more than 85 percent of the entire purchases by the consumer in the United States of America. He attributes this high degree of purchasing by women to the astute nature of consumption; that is, they are more willing to commit their energy and time to conduct research and comparison of products. Lewis also imputes the trend of women shopping to their approach to solving problems, given that their brain is two sides. Hence, they are easily persuaded to make purchases based on the emotional attractiveness of a product, as compared to a male customer (“Men vs. Women”). Topshop has taken this fact into consideration in designing their products and hence differentiating their products from their competitors. However, Topshop also focuses on menswear, albeit to a trivial degree.
Additionally, the branding of the product promotes individuality through the use of Style Advisors. Topshop launched Style Advisors service in 2001. The objective of this service is to help customers find the ideal wear as per their preferences and the occasion in which the cloth or accessory is to be worn to (Topshop USA Website 2). When I first started shopping in Topshop, I was not able to settle for the perfect clothing that would fit the graduation party I was going to attend. However, with the style advisers in the Topshop store, this was not something to worry about anymore. It is because all I needed to do was to describe the occasion I was going to attend, and my preferences and the best would be selected for me. The idea of having a style adviser has enabled Topshop to differentiate its products from those of the competitors since it builds the confidence of the customers in regards to choice of clothing purchased.
2. Price
It is imperative to have the best pricing strategy for the products of the company in order to command an ample market share in the market. The pricing strategy has to consider a competitor’s pricing, shipping and more importantly, the product’s demand. The Topshop store’s target market is comprised of young people who operate on fixed budget schemes rather than high-income earners. Integrating the income position of the target market to the concept that the fashion trends should be affordable to the market niche of the company, Topshop has a range of prices for its products (Fox 1). For instance, the lowest regular price is $35 whereas the highest regular price is $ 680. Also, the lowest sale price is $4 whereas the highest sale price is $360 (Durland et al. 4). However, Topshop charges higher prices for products as compared to its competitors. For instance, a leather jacket in Forever 21 goes for $20 whereas a leather jacket that alike goes for $60 in Topshop (Bone 2). The pricing strategy used in this respect is price skimming, where the product is initially priced higher so as to maximize the sales of the product. The popularity of the brand has seen this strategy successful since Topshop still commands a higher market share as compared to its competitors.
Moreover, the issuance of discount cards has enabled Topshop to maintain its loyal customers. First, students get a discount of 10 percent on any product bought from the Topshop stores. Most of the customers of the Topshop store in Los Angeles are students, especially college scholars who have a strong sense of fashion. By granting the students such an attractive discount, they will be persuaded to continue buying from the store every time. I often save a great deal each time I shop in Topshop stores without compromising my sense of fashion (INITIALS Marketing 1). Also, discounts are granted to all customers during festive seasons, such as Christmas (Topshop USA Website). Through such pricing strategies, the loyalty of customers is intensified.
The Topshop store also provides its customers with free shipping for orders that exceed a hundred dollars. The international customers do not need to pay an extra price for their goods to be delivered in their country. It is one of the ways through which Topshop can command a greater market share in the global market. All an international customer needs to do is to order products that exceed $100 and wait for the delivery of the goods. However, if the international customer needs, the products more promptly than the Topshop free shipping program can deliver, then an extra charge is incurred (Topshop USA Website 2). Topshop manages to uphold an effective pricing strategy and hence becomes better positioned than the competition.
3. Place
The location of a retail shop is of the essence when considering the consumption of the products that a retailer has to offer. As a retailer, Topshop serves the role of a middleman between the producer of the accessories and clothing and the consumers of these products (Durland et al. 4). Topshop is situated at The Grove, a commercial complex, in Los Angeles, among other fashion stores. Topshop store at The Grove is positioned at the corner spot. It is the only Topshop store in Los Angeles. The Grove borders Hollywood and this means that several tourists and loyal customers are drawn to the complex. As a result, the Topshop store attracts many tourists and other local customers, who are fashion conscious (Topshop USA Website 2). The aim of taking the corner spot is to pull in customers from the two major sides of The Grove and to make the advertisements more effective. However, it is authentic that the lease charges of the space are tenable high, but the public traffic at the foot of the space yields enough profits to offset the lease costs. Also, the store is positioned at a point that is proximate to the working class, who are the professionals that Topshop targets to sell its products to.
Furthermore, the placement strategy of the Topshop store takes into account the concept of e-commerce. With the emergence of vast advancements in technology, the internet has become a shortcut of reaching potential consumers in the target market. Apart from situating the Topshop store in a strategic position, the internet to serve international customers and they can also track their orders through the store's website (Durland et al. 4). For instance, I do not have to go to the Topshop store in Los Angeles to make buy a leather jacket I fancy. Rather, I just use the internet to make my order, and the leather jacket will be shipped to wherever place I will be. The use of the internet to reach customers has aided the Topshop in acquiring a greater market share locally and internationally.
What is more is the fact that Topshop uses its store in Los Angeles decides on whether to expand in the area or not. There is only one Topshop store in Los Angeles and the gist here is that the decision to expand is based on the feedback received from this store. I can anticipate that given the sound performance of the store in Los Angeles, another Topshop store will be established so as to reduce the congestion in current single store due to excess demand. In essence, Topshop enjoys the first mover advantage by setting up a single store in the market. Then, analyzing the feedback from this store in determining whether to extend to the market or not (Durland et al. 4).
4. Promotion
Retailers need to promote their products so as to sensitize awareness in prospective customers. The intention of promotion is to sway potential customers into buying the product. Through promotion, the brand image is presented in the best possible manner (Durland et al. 4). The Topshop store’s promotion strategy involves hoardings, meaning, to having outdoor billboards of the clothing accessories and the discount plans they offer. However, the Topshop store does not use Television advertisements despite the potential of generating much more income from them. It is because their major tool of advertisement, and hence promotion, is through their customers who do it through word of mouth (Bone 1). The store always has clothing and accessories that are popular and trending, and when young people learn of this, they tell it to their friends.
Nevertheless, the products of the Topshop store are promoted through TV in different respects. The daughter of the owner of Topshop is featured in the famous show known as Made in Chelsea. As such, she promotes her father’s business by wearing clothing and accessories from Topshop as well as encouraging viewers of the show to purchase products from these stores. It is because she is the heiress of Topshop once her father passes on. On the same vein, Topshop products are worn by celebrities and this is a form of promotion in itself. In fact, the popularity of the store ascribed to the collaborations that the Topshop store has with celebrities, socialites, and models (Bone 1). One of the popular collaboration that the Topshop store has made by a celebrity is through offering an exclusive cloth line of Kate Moss. Other famous celebrities who endorse the products of Topshop include Beyonce, Katy Perry, and Rihanna (Fox 2). Young people, especially the female, are easily influenced by the actions of celebrities whom they adore and thus when they wear Topshop clothing, they also get the urge to buy similar products.
Additionally, the Topshop store promotes its products through backing initiatives at the grass root level. Topshop, in collaborative efforts with NEWGEN, nurtures new talents through financially supporting young upcoming designers and presenting them with an opportunity to showcase their talent in the global arena (Fox 1). Toddy Lynn is not meant in stating “Topshop supports the young people and the young people are the people that actually make fashion” (INITIALS Marketing 2). Topshop has promoted its product by delighting the new generation of fashion enthusiasts. Topshop also sponsors events, such as the London Fashion Week, and its products are recognized in the Lakme Fashion Week. In the course of the London Fashion week, the Topshop customers are presented with an opportunity to purchase customized clothing, identical to the manner it was worn on the runway. Also, the Topshop shop promotes its products through magazine shoots (Topshop USA Website 1). Potential customers are persuaded to purchase after reading the fashion magazines in which Topshop is featured.
Finally, the Topshop store’s promotion strategy banks on the internet in making the marketing strategy effective. The young generations, who are the major customers of Topshop, use the internet to a greater extent. Research shows that 93 percent of young people aged between 12 and 29 years go online. (Pew Research Center 2). Topshop has taken advantage of this fact and has employed social media to gain customer insight. Customers are presented with an opportunity of liking posts and subsequently sharing them if they find them delighting. Topshop uses this strategy to expand its market target, besides getting customer insight. The essence of promotion is to ensure that there is a two-way communications network between the brand and the customer. However, the most important thing is that the customer can make a purchase when an impulse to do so comes about (Durland et al. 4-5). The internet makes this possible for Topshop store and no wonder it is above its competition.
In conclusion, the Topshop store in Los Angeles has been successful in its operations due to the effective marketing mix employed. The store has the latest clothing and accessories, which young people purchase in order to look “cool”. Moreover, the style advisers ease the task of making decisions on which clothing to purchase. The location of the store in The Grove means that the commercial nature of the complex will make the store accessible to local customers and tourists, as well. The online presence of the store further increases the accessibility of the products of the store to international customers. Despite the high process that the store charges for its products, customers still buy rather than shifting to the competitor stores because the brand is popular and the quality of its products is unquestionable. Besides, students, who hold a large stake of the target customers, are granted a 10 percent discount on any purchase. Finally, Topshop promotes its products through billboards; collaboration with celebrities, models, and socialites; nurturing design talent; sponsoring fashion events; and through the use of social media. Without doubt, a well-developed market mix has the potential of taking a business a long way.
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