A RESEARCH STUDY Of Cotton On Marketing Essay

My main target is to find out more on Organic cotton On as a business and find out information how Egyptian cotton On became one of the most popular and identified brand irrespective of their fierce and challenging competition. Moreover, I'm going find out what kind of problems these are facing and how Organic cotton On overcome them in sustaining their brand name.

Introduction

Company's History

The Cotton On Group began in 1991 with one store in Geelong, Victoria. Since the humble origins, The Silk cotton On Group has quickly improved into an authentic fashion destination boasting 600 stores and 4500 employees with Nigel Austin as the Managing Director of Natural cotton On.

Even although Egyptian cotton On Group started with the main one store in Geelong, Victoria, it was then widened with a few more other stores in the other parts of Australia. Eventually, the brand became famous and therefore increasingly more chain stores opened throughout the world such as in Hong Kong, Malaysia, New South Wales, New Zealand, United States of America and Singapore, merely to name a few. It is also said that they can open another shop in Mainland China sometime in July 2010.

Operating for 19 years in business, other than efficiently growing in the amount of stores throughout the world with an increase of than 600 stores, Organic cotton On has successfully achieved into expanding their branch into sleepwear, intimates and effective wear with Natural cotton On Body, footwear with Rubi shoes, children's apparels with Silk cotton On Kids, and fixed and gifts with Typo.

Body

Company's mission

"We will be the dominating value fashion brand globally"

Their objective is to become the most progressive and reactive brand of their market without reducing their values that have made them what they are today. They are simply devoted in providing top quality products at affordable prices, an outstanding customer service and offer a confident shopping experience for each customer. If a customer's wishes and needs are fulfilled, then they will make purchase and continue steadily to return as long term happy customers. For the reason that they believe that the success of the business enterprise would depend on providing their customers with a consistently higher level of service.

Behind it all - Their Culture

An essential aspect of the Natural cotton On success storyline has been the strength and commitment off their people to maintain and enhance the standard of their products and the service with their customers. When customers visit Organic cotton On, these are not just walking into a store; they may be entering a brandname.

The personal information of Egyptian cotton On on the market is based on the quality of the product, how fashionable and affordable everyday clothes. To allow them to uphold this, the product team are constantly open to the elements to emerging local and overseas trends that reflect the lifestyle of their customers.

Their product team vacations regularly to Europe, UK, USA, China and India, always sourcing items which reflect their customer. They will then spent weeks working on the fit, color palettes of the products and price details to make certain that the end result of an item will standalone in the retail environment. This is why why Organic cotton On can sustain their brand name and their quality of the brand.

Their stores have a solid existence and vibe in order their associates. This in changes supported with the grade of the product. It provides an atmosphere that has their customer going back to the store for much more. The company's commercial image is displayed by a higher standard of aesthetic merchandising. Thus this creates a distinctive identity of Silk cotton On itself so that customers wouldn't normally get mixed up with the other brands outside on the market.

Their young clubs are all very diligent and take their positions very seriously. Their primary concentration is to ensure that of the clients are remaining satisfied positively based on their shopping experience. However, in the quantity market, it is vital our products speaks for itself - shopping is done faster presently and decision are created instantly. The merchandise focuses on key elements like touch, colour and price point therefore the customer will never be confused.

Cotton On invests in the future to be sure that their success carries on. They consistently consider areas that they can slowly but surely improve on like the look of the store, the product distribution, the guaranteed quality with their product, and also management and training of the staffs. The display of the store is persistently supervised and a continuing store revamp strategy will make sure the high standard that was being established will be fulfilled and maintained.

The key concentration of their real real estate strategy is locating and producing stores that provide an appropriate shopping experience and positive store atmosphere that allows the client to feel the pleasure of buying fashion and them coming back to get more.

Pricing strategy

Cotton On has establish itself to be using the penetration costing strategy. When they first started with the first store at Wisma Atria, the rates was relatively cheap. They then increased on the designs and marketed more of their newly launched store by the Internet, Magazines and words of oral cavity. When it gained recognition and became more known over the years, the prices has began to increase. At exactly the same time, the quality of the merchandise also increased as more R&D (Research and Development) is devote to cater to the needs of today's customer. Also, more elaborate designs are launched to catch the attention of clients as well as retain existing ones

Apart from that, they also have adopted other ways to costs too. You can find psychological pricing where a bottom may cost at S$49. 90 to provide an emotional way that the merchandise is in the range of 40 something rather than 50. It runs the same way too for a high which may be coming in at S$19. 95 to give an emotional methodology so a customer may think that it is 'cheaper' in a sense.

In addition to that, for its central selling items, Cotton On uses bundled pricing. Besides giving affordability choice, it advises customer to buy more amount of goods. For instance 1 top may cost S$19. 95 however in a bundled price, the same top can get the client to get 2 than it for S$30. 00. This would save them S$9. 90. Hence, customers will have a tendency to get 2 parts rather than 1. This leads to the center items being sellable.

Lastly, Silk cotton On would promote promotional charges during selected times including the festive season, The Great Singapore Sales and vacations. Due to Cotton being based in Australia, they certainly follow a few of the Australian conditions too like Easter. Thus, Singapore would also have Easter Sales that happen sometime in early April. These common strategies are excellent depending how the management carries out the campaigns. The special offers could generate more sales and make Silk cotton On gain competitive gain against its' competitors when positioned correctly.

Promotion

Besides rates, another marketing strategy that was used by Cotton On to reach to more customers was to publicize the brand. One of the common tools employed by Organic cotton On was to advertise on buses, poster and even in paperwork about the special promotions and offers that they hold. Other than that, they also display their latest arrivals on mannequins to attract customers in to the shop. Visual merchandising is important as it operates as the face of the company and appeals to people. Other than that, in order to keep up with the ever before changing needs of customers, a lot of its retailers have been through renovations to bring another shopping atmosphere. This change in light and screen brings several different replies from new customers. Overall, this has enhanced Natural cotton On idea and differentiate itself from its rivals.

Strategies used in the store

Merchandise Greetings

Greeting customers constantly to make sure they are feel welcome

Smiling sincerely and proactively to provide a positive vibe

Introduce new arrivals

Share product knowledge

Staff needs to portray positive body language

Advise combine & match of merchandise

So that the clients will purchase more items (a method used to up-sell)

Invite try-on

Staff should advise the option of colors so that customer can make their choice

Best is to escort customers to fitting room to improve their fitted experience and make sure they are feel more loved and important

After them striving, try to ask them 'How was it? Do you like it?'

Gives fashion advice & match merchandise with accessories

Suggest what accessories to match with costume look, cross-selling

WAP Selling

With Any Purchase bought, customers can get house slippers at S$5. 00 (U. P. S$9. 95) or a tote at S$10. 00 (U. P. S$19. 95)

Summarize goods purchased

Confirm range of item bought contributes value to the service and also prevent any misunderstanding during the transaction made

When staffs stand to these strategies which were lay down by the business, it could keep customers' pleasure with the way the staffs work. Competition is all around the modern world. Thus, there are a need to provide that extra service that will always please the clients.

Charity - Natural cotton On Foundation

Cotton On has been boosting money for charities since its commencement in 1991. The fundraising process received an enormous boost when they initiated the $1 charity tote sales program in 2004. All proceeds were aimed to charitable causes and because the charity bag initiative commenced, over $750, 000 has been lifted.

Other than the $2 charity handbag sale program that they are doing now (it was $1 when it first began), they unveiled further initiatives like the favorite bottled water promotions which they are available at $1. 50 each in order to raise more money and can be aimed to needy causes. As the company opens more stores and expands internationally, so too will the funds rose from water sales.

The purpose of the foundation was to help remote and disadvantaged neighborhoods around the globe however in 2009, The Silk cotton On groundwork has managed to increase over $1, 000, 000 to help the needy.

Cotton On in Singapore

Cotton On is a more substantial than life, vibrant retail giant that is rocking the neighborhood and international retail arena. It is famous for fast-paced, leading edge street wear for girls and men at easy on the pocket prices. It really is a brandname which would seem to be to be having similar features as their competition like people we have here in Singapore such as Hang up Ten, Giordano, IPzone as in addition they serve their brands to almost the same age groups. . Within Singapore, the principal focuses of customers to allow them to target on are the 18-30 years old. The first Cotton On outlet that people had here in Singapore was established in 2007 and it was located at Wisma Atria, Orchard Highway. Due to the high response from the first shop, string stores were then opened up in different parts of Singapore. Up till time, Cotton On has a total of 21 stores pass on across Singapore with one store beginning soon in Bugis.

SWOT analysis

Strengths

Weaknesses

Various locations in Singapore

Distributed evenly across Singapore

Stores have good working/ shopping environment

Prioritise in the importance of Customer Service/ Satisfaction

Staffs would have to undergo compulsory training for 5 times before undertaking their required tasks in any Organic cotton On store

They hire young people with good personality in creating the atmosphere at the job a fun destination to be at

Both full-time and part-timers have their own privileges in working at Natural cotton On (50% and 30% discount respectively)

They have a Performance Management Program for staffs (made to support ongoing improvement in efficiency towards customers and development of themselves)

Made use of their established website, twitter and Facebook as Social Media to always update their potential or existing customers (e. g. registration of newsletter)

Mission statement: "We are the dominating value fashion brand globally"

Bundled promotions, Sales, WAP(With Any Purchase)

Merchandise Greetings

Different zonings (sections of the store) directed at the number of staffs available

Affordable for all

They would need to lower or cancel shifts of part-timers due to the income and sales.

Therefore, not having enough staffs to take care of the complete store

When there are lack of manpower, customer support will therefore decreased

Security sensible - insufficient it

Consistently changing of the prices

Production in bulk

Poor quality of merchandise (materials, faulty items)

Locations might be near to competitors

Bulk creation of merchandise

Availability of size

Unclear declaration regarding memberships

Opportunities

Threats

Venture to the other Asia Market in the regional

Tapped on spending power

Collaboration with Disney, Cartoon Network and Dutch Designer (Dick Bruna whom created 'Miffy', the popular persona in children's literature)

Merge with more companies from abroad

Expand product range

Expand suppliers' field

Competitors under the same market

Location (where in fact the store is situated at with other competitive stores nearby)

New entrants

Online shopping

Needs of customers are changing

Recommendation

Cotton On has managed to turn out with staff that can render strong customer service that have evidently impacted customers. Therefore, customers are actually planning on the same high level of standard as well as perhaps even more now. It's very easy to attain but sustaining it over time is definitely something they can be proud of. Since customers already are used to the Natural cotton On service culture, they'll expect more soon. The management should be looking through the service strategies constantly to see if there is any revision needed.

One feature that the management needs to consider would be for the item and service smart. Cotton On can actually conduct a brief study or feedbacks regarding their products or their service. In this manner, Natural cotton on can constantly explore ways in increasing and establishing higher benchmarks for themselves to meet their customers' expectations. They are able to also actually make an effort to turn out with some limited pieces of merchandise and established it at premium price and start to see the response from customers. Many are willing to fork out extra for quality and unique items. Thus they can check it out on the local market, maybe starting on a smaller level to only particular potential outlets(preferably at Orchard Highway) and when the response is good, they can expand it further.

Other than that, they can provide training not only for full-timers but part-time personnel as well to gain more knowledge regarding products and the best way to deliver good customer service to customers. Their knowledge on the product features, fashion guidelines and beneficial programs are lacking. They are also on the frontline thus it is merely fair for them to receive proper care and also training.

Lastly, the management should review the Organic cotton On website. It might be better if the web site provides online shopping using their variety of latest or existing apparels. Presently, the website is only displaying the catalogue of what's new popular in Cotton On. Therefore, establishing a virtual shop for customers to look online would be a great way to increase sales and also to cater to a larger audience as in the modern world, lots of the people are IT savvy. Thus they might spend more time on the web.

Conclusion

Over the past few years, Egyptian cotton On has proven that it's still a selection among the local customers by the number of stores that has expanded to over 21 stores since its first wall socket at Wisma Atria.

Other than that, personnel should be capable enough to provide something standard that surpasses beyond customers' prospects. Other than concluding sales, they need to give advice on fashion and go beyond just supporting customers in the shop. Customers should be treated as friends and continually be ready to give the helping side when someone is in need of it.

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