The decision regarding the introduction of additional line for W-S should include the aspect of current brand positioning. In fact, the company focuses on a segment of middle-aged population with no brand preferences, but the price and the quality of products. Therefore, W-S has little experience in promotion of such products as boys suits and sports coats, which should have a strong marketing and advertising focus, aimed at the necessity to convince parents to purchase the offered items for their kids. Thus, the company cannot introduce a new line without allocating significant resources for products promotion. Moreover, today, the firm allocates little resources on promotion of its main pieces of clothes, which means that the share of advertising activities in the final prices is rather low. However, for the boys collection such expenses are likely to rise. It means that the company can experienc the problem of either low markup for the new collection, or will have to position the items for children and adults differently. Consequently, the target audience will face the issue of anticipation of the W-S brand. Furthermore, W-S is in a fierce competition with other clothing companies, and thus should not raise the prices on goods to cover the expenses associated with promotion of its new product. On the other hand, it can face serious problems due to the lack of financial resources to make the new line popular enough to cover all the expenditures associated with the promotion.
The current approach of W-S to structuring its product line is rather justified with regard to its major customers. However, it can make further extension of the product line rather problematic. Primarily, the company provides limited set of men and women clothes in different sizes and colors. However, such system makes the customers of W-S to rely on a stable product offering. In this case, middle-aged people with the focus on quality and price are considered to have permanent tastes, and the chosen approach can be effective for the company to attract the stable client base. Simultaneously, all the products are of reasonable prices, which helps to attract clients with middle income. However, the price range within the same category is rather broad and it enables the company to meet particular tastes and preferences of its clients. W-S is mostly focused on outwear and mens formal wear, which generates the strong associations among the clients about the types of clothes they may purchase from W-S. However, such approach can be harmful for the company willing to increase product line by adding the new items or launching the new lines, because some customers could become dissatisfied due to the loss of the companys focus, and thus associate the probable reduction of the quality with such step.
Currently, W-S is using a rather conservative marketing strategy due to the focus on the audience paying little attention to the brand or the amount of ads it sees. However, the decision of the company to add new product line should be accompanied with the changes of its marketing strategy, required by the product development marketing strategy. Primarily, in the case focusing on children, teens or young adults, the company is required to introduce more aggressive promotional strategy with the use of different media channels to reach the target clients. Thus, it will require W-S to determine its core strength and distinguishing features besides the good ratio between the price and the quality to attract the new buyers. At the same time, the company should change the patterns of operation with the retailers, offering them both the lower prices and the volume discounts to increase their level of engagement and motivation for selling more W-S items. On the one hand, such actions will require the company to spend significant resources on fulfillment of the new marketing strategy. All the once, they are likely to make W-S successful in extension of its product line by adding completely new items and entering new segments.
Monica is the author at https://essaysleader.com/memo-meaning-understanding-the-fundament/. She always dreamed of working in this position, working with texts and new information. After all, her credo in life is to develop daily in different fields and be an interesting person. She is fluent in three languages and holds a Masters Degree in Philology and Translator, and is also trying to master new fields in order to be knowledgeable in everything.
There are no reviews of this book yet. Be the first!