Final Assignment Finished

Fashion Marketing and Branding – Marketing Report – Final Assignment Logan Stodart – W156423291

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Exofitness Marketing Audit and Plan

Logan Stodart University of Westminster

MA Fashion Business Management

Fashion Marketing and Branding 2015-2016


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TABLE OF CONTENTS:

1. EXECUTIVE SUMMARY 3

2. MARKETING AUDIT 5

2.1 PORTER’S 5 FORCES 6 2.2 HOFSTEDE MATRIX 8 2.3 EXOFITNESS CUSTOMER PROFILE 9 2.4 PRIMARY RESEARCH 11

3 MARKETING PLAN 13

3.1 SOCIAL MEDIA MANAGEMENT 14 3.1.A MARKETING MIX ADVANTAGES 16 3.2 WEBSITE REDESIGN TO MIRROR BRAND IDENTITY 16 3.2.A MARKETING MIX ADVANTAGES 17 3.3 COLOUR PALATE OF EXOFITNESS 17 3.3.A MARKETING MIX ADVANTAGES 18

4 CONCLUSIONS 19

5 APPENDIXES 21

5.1 COMPLETE SQUARESPACE.COM OFFERINGS 21

6 REFERENCES 22

Words – 4,570


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1. Executive Summary The sportswear industry has grown due to the recent drive of consumers

to wear athletic clothing for leisurewear, also called athleisure (Mintel, 2016), as well as sports activity (Mintel, 2015). Young consumers have begun purchasing sportswear, with an interest in innovations as well (Mintel, 2015). This has changed the way that sport brands compete for market share and market their product due to the way that consumers have begun purchasing products (Verdict, 2014). The current female consumer in the fitness industry in the United Kingdom has been seen to be on average aged 16 – 50 years old (Mintel, 2016), and using social media activity with Instagram being the most popular social media site currently (Rome, 2016). These consumers, if active, are interested in cycling and going to the gym (Mintel, 2016), and are interested in following fashion trend (Verdict, 2014).

Exofitness. London is a sportswear brand launched in the United Kingdom in 2015. It is a set of compression wear with patented weights set into the material to aid in the toning and training during sporting activities (Sinclair, 2016). The marketing activities for the brand are currently solely on social media and are run by the owner of the brand, Shirley Sinclair. These activities have aided the brand to a modest and dedicated customer base who share the product through word-of-mouth as well (Sinclair, 2016). Despite these efforts, the marketing of the brand can be extended to reach more of the target customer base to develop a brand identity (Grose, 2011).

To improve the efforts of Exofitness the brand can employ a new marketing strategy that will increase the brand reach. This strategy will have three parts, those being the employment of a social media manager to improve the social media of the brand, updating of the brand website to match to new brand identity, and the updating of current color palate of the brands offering. By updating and adding these features to the Exofitness offerings, the brand will


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gain traction in the consumer marketplace that is currently unattainable with the current marketing plan.

The costs of the proposed strategy are 250 pounds sterling per month for employing a social media manager, as well as the cost of updating the website which if using a website provider can cost 18 US dollars per month for design (Push, 2016; Squarespace.com, 2016). These proposed cost estimate are available internationally and can be used for business e-commerce (Push, 2016; Squarespace.com, 2016).

With the sportswear industry becoming more open to more consumers (Mintel, 2015), the proposed strategy will allow Exofitness. London to target and reach a wider market through their social media and website branding. This will help them convert more site visits into sales and earn more profit through a more effective marketing plan.


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2. Marketing Audit The current sportswear market has begun growing in recent years due to the increase in the popularity of peoples need, interest, and concern in personal health. With this popularity, the increase of sportswear brands has risen as well. Many clothing retailers have begun offering sportswear to supplement their clothing offerings and tap into the popularity of the fitness industry. Due to the increased competition from non-traditional retailers entering the industry and the recent introduction of specialty retailers such as Lulu Lemon and Sweaty Betty, Branded retailers have the need to work harder to retain customer loyalty because of the increased customer options in the market space (Verdict, 2016). Specialty Retailers have changed the sportswear industry (Mintel, 2015) because of their specialized offers and their unique positioning in the market space. This is due to their marketing (Mintel, 2015). They have been able to target a specific group of individual sport participants, who have become loyal to their brand and the activities that they participate in. These brands have become very popular in the recent years changing the dynamic of the industry, making it difficult for new brands to break into the market (Verdict, 2014). With the introduction of popular clothing brands sportswear lines, convenience has also allowed consumers to change their sportswear loyalties to other brands at much lower cost to the consumer (Mintel, 2015). Brands like Topshop, H&M, and Urban Outfitters have begun to offer sportswear under their own name (WGSN.com, 2016) to follow the increase in popularity of the fitness trend as well as the current athleisure trend. This has changed how consumers purchase sportswear because they now can purchase all of their clothing needs during their one trip to the store (Mintel, 2015). This has made branded stores need to market their products compete for market share even more difficult due to the need for consumers to make a second trip into separate stores for sportswear purchases (Verdict, 2016). Because of this need to compete for


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market share, the current marketing of sportswear brands has also increased due to the increased competition (Mintel, 2015).

Athleisure, a popular new trend has also changed the way that consumers are wearing sports apparel and purchasing sportswear (Mintel, 2015). Athleisure can be defined as individuals using athletic clothing as leisure wear in their daily life, instead of for sport (Mintel, 2015). This trend has become so popular in the current fashion industry that many brands have begun offering more casual sportswear and marketing towards this trend instead of towards the active fitness trend currently (Armes, 2016). Over half of the the consumers in the sportswear industry are purchasing for use everyday as athleisure (Mintel, 2015). It has become a fashionable trend, where clothing and footwear can be used in daily life or in sporting participation (Armes, 2016).

2.1 Porter’s 5 Forces The fitness industry has begun to grow over the last 10 years because

people have begun to care more about their personal well being and health (Verdict, 2014). This has resulted in the increase in sports participation as well as the purchasing of sportswear (Mintel, 2015). This has resulted in many new brands offering specialty sportswear lines to be worn for use in specific sports (Lululemon.com, 2016), as well as the opening of many branded sportswear stores. These stores have become more popular all over the world, with the opening of the largest Nike store in London (Porter, 2015). With these offering the competition in the industry has increased as well.

Michael Porter (1979) developed the analysis of the industry allowing retailers and consumers to see the different factors that affect the market place and the players within them. The factors that affect each of these players will be affected by many different factors including but not limited to: the power of suppliers, the power of buyers, threat from substitute products, thread of entry by new competitors, and power of complimentors (Porter, 1979). A sixth factor was then added by after adaptation by Haberberg and Rieple (2006) in added the factor firm’s rivalry. This factor explains the direct competitors of the industry and the most powerful players within the industry (Haberberg and Rieple, 2006). Below is a developed example of the 5 Forces Model developed by Michael Porter


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(1979) and adapted by Haberberg and Rieple (2008). It shows some of the factors that currently affect the sportswear industry.

Figure 1:

The model about shows all of the factors in Michael Porters five forces model from his 1979 paper, as well as the added factor of the current firms rivals factor that was added by Haberberg and Rieple (2008). These factors can then be applied to the sportswear industry to show the following:

1. Power of Suppliers – Medium: The ability to change suppliers is very plausible due to the ability that brands have to switch between other manufacturing facilities due to large number of manufacturing facilities that can produce sportswear (Haberberg and Rieple, 2008)

2. Power of Buyers – High: Consumers in current marketplace have many options due to the many brands of sportswear and places to purchase sportswear, because of this the switching cost are low (Haberberg and Rieple, 2008; Mintel, 2016)

3. Threat from Substitute Products – High: Consumers have the ability to spend their disposable income on their any product that they wish too, not just fashion items or sportswear

4. Threat of Entry by New Competitors – Low/Medium: It has become very easy for new brands to enter the fashion market, but to compete at the


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high level of the major levels of the current fashion industry it has become very difficult for new brands to compete (Verdict, 2014; Porter, 1979)

5. Power of Complementors – Medium: The counterfeit industry is very large in the fashion industry, so large brands need to be wary of this due to the possibility of trends being counterfeited

6. Firm Rivalry’s – High: In the sportswear industry the most popular place to purchase clothing is currently Sports Direct, while brands Lululemon and Sweaty Betty have recently changed the the industry because of the unique offerings directed towards specified sporting acts (Mintel, 2015)

These forces affect the sportswear industry and the fashion industry as a whole to influence brands to change their strategy (Porter, 1979). With the influences of these forces brands can see how to best target their industry (Haberberg and Rieple, 2008). This will allow them to be able to identify their target market within the general industry.

2.2 Hofstede Matrix With the increasing competitiveness of the fashion industry and the

increasing level of stores and brands offering sportswear, new brands need to offer unique advantages to their consumers to keep them committed to their brands (Posner, 2015). With this consumer’s ability to switch brands and high level of choice also comes other choices, not just in the sportswear market but also in the general fashion market as well.

The Hofstede Cultural Dimensions Model shows how individuals within a culture are going to make decisions and how they view major cultural views (1983). This cultural dimension model also can show how people make decisions and how people are influenced by trends in society (1983). This model has six dimensions and those are the following: individualistic vs. collectivistic, masculine vs. feminine, uncertainty avoidance, power distance, time perspective, and indulgence vs. restraint (1983). Below is a figure showing how consumer views are currently influenced by these cultural dimensions.


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Figure 2:

DIMENSION DESCRIPTION OF INFLUENCE

INDIVDUALISTIC/ COLLECTIVISTIC

People in the current society are more likely to influence by their current needs and goals than by the goals of the group/society

MASCULINE/ FEMININE

Society is moving towards a very gender neutral state, where gender is not being looked at in ever day life

UNCERTAINTY AVOIDANCE

People prefer to know what is going on in their lives day to day but most individuals do not know what the future hold 5-10 years from now

POWER DISTANCE

In the current market place the power distance is very high, consumers like to be able to have an influence in their daily lives (in the market or government)

TIME PERSPECTIVE

Consumers have begun planning 2-3 years in advance but future planning does not reach the 5-10 mark as it has done in the past

INDULGENCE/ RESTRAINT

Consumer purchasing has gone up since the recession in 2008 and purchasing power of customers is higher in recent years as well

[Mintel, 2015; Verdict, 2014] This figure shows how the consumers in the current industry react to the market place and to the environment around them. These factors can help us see a general population overview about the consumer marketplace. Consumers currently are moving towards a gender neutral population where gender no longer maters so marketing towards this trend could be beneficial.

2.3 Exofitness Customer Profile Shirley Sinclair identified the current customer profile for Exofitness.

London to be a woman in her 50 – 60’s that is just starting to become active again (2016). This woman is going to be exercising by simply walking in her local park and is very busy and does not have time to do anything else (Sinclair, 2016). This customer profile, after looking into the current fitness industry has


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been identified as the incorrect target market for the current market for the Exofitness branding. If the brand wishes to maximize their brand identify and maximize their brand marketing they should change their target customer profile to fit the current market to maximize sales and profit.

The Exofitness customer profile can be developed from information gathered about the current marketplace. The chart below describes some of the interests of the Exofitness consumer.

Figure 3:

The Exofitness customer is female, currently living in the United Kingdom and is aged 16-50. These customers are interested in following fashion trends as well as cycling and running, and sustainability in the fashion industry (Verdict, 2014). The most popular social media sight that is used by consumers in the fashion industry currently is Instagram (Rome, 2016) and the most popular magazine read by women interested in sporting activities is Women’s Health (Subscriptions, 2016). One of the most popular concerns for these consumers is the factor of comfort in their purchases of sportswear, this is what has lead to the popularity of the athleisure trend in recent years (Mintel, 2015). By identifying these target consumers Exofitness has the ability to market their product to the correct demographic for purchasing. This will allow them to


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be the most successful in their endeavors to become a successful business entity (Grose, 2011).

2.4 Primary Research Current branded sportswear locations in have become more popular with

the rise in trend of sporting activity. These locations as well as non-branded sport retailers are where consumers purchase their sportswear, instead of purchasing online (Mintel, 2015). Sports Direct, the non-branded sports store is the most popular location for consumers to purchase their sportswear from in 2014, followed by Amazon.com (Mintel, 2015).

However, when Shirley Sinclair (2016), the owner of Exofitness London (now refereed to as Exofitness), introduced her brand and product she stated that non-branded sportswear locations were locations where “she could not see her product” (Sinclair, 2016). Due to this, an observation was conducted of the types of consumer that were currently shopping in non-branded sporting locations versus branded sports locations as well as concessions where Shirley believed that she was better suited (2016).

While observing the customers in Sports Direct on Oxford Street, the following was observed:

Figure 4:

All of the consumers in the store where counted and out of the whole 63%

where women. This was an observation that was higher than initially expected. It was then that the concession of Sweaty Betty in Selfridges was observed. This location was mentioned by Shelly (2016) as a location where Exofitness might fit


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in as a placement of sale. During the one hour of time that was spent at this location 9 women visited the concession and two made purchases. When interviewing the employee managing the concession at this time she said that this was a normal rate of consumer traffic due to the location (Anonymous, 2016).

This showed that concessions in large department stores, such as the Sweaty Betty concession in Selfridges could be profitable for a brand like Exofitness and will attract consumers on a regular basis. It also shows that women frequent non-branded sport retailers, which make it a possible option for Exofitness as well.


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3 Marketing Plan Exofitness has only been marketing and selling their product in the

sportswear market place for one year (Sinclair, 2016). Shirley Sinclair has been using social media, trade shows, and word of mouth to distribute and promote her product (Sinclair, 2016). This has allowed her to grow a small following of dedicated users to her products that believe in Exofitness.

However, the development of the Exofitness brand has been very low and has not gained much traction in the last year. The growth of Exofitness’s social media presence has been small to none compared to other sportswear suppliers in the United Kingdom. With social media being the main source of information, and connection to consumers that Sinclair provides to consumers the progression is vital to the success of the brand. The following figure shows the Instagram feed and statistics for Exofitness and the major competitors in the UK market:

Figure 5:

This figure shows that Exofitness has not reached the popularity or reach of the current market leaders in the sportswear industry. To do this Exofitness would


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need to reach a new market by targeting their brand identity social media towards their target customer more actively. They can do this through the following three elements that will aid their marketing strategy growth, that according to Sinclair is non-existent currently (Sinclair, 2016).

The marketing budget at Exofitness currently is 0 pounds sterling and is done completely in house by the owner, Shirley Sinclair (Sinclair,2016). Sinclair invests only maybe an hour per day, if that, she said into social media, to help progress and capture new customers (Sinclair, 2016). The use of hashtags is the way to connect with users on many social media platforms. The hashtags that are in use on the Exofitness Instagram pages commonly are #itsawalkinthepark, #exoftinesslondon, #activewear, #compressiontights, and #walkingthedog. These tags are not commonly used by social media users so the posts by Exofitness are not commonly found by users who are not actively following the page.

By adapting the Exofitness marketing strategy to be more brand and customer focused, it will allow the brand to target a new audience that is currently not being reached by the used strategy. This strategy will use three a part plan to target these consumers, those steps will be to access social media management, website redesign, and to update the color range of current product line. This strategy will enable new consumers to reach and understand the brand identity delivered by the social media and new website. The strategy and three plan steps will be discussed in more depth below.

3.1 Social Media Management The popularity of social media in recent years has made the need for

brands to turn to popular social media sites to target their consumers. This has lead to the employment of social media management. These individuals are tasked with assisting brands with the following tasks:

• Branding – Management will help companies develop a brand identity to promote online on social media

• Digital PR & Social Media Campaigns – Developing campaigns that promote the previous developed brand identity, and will reach new customers


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• Creative Direction – Branding developed in partnership with the brand team to promote brand reach and brand identity

• Launching Campaigns – Management team will identify the correct post/campaigns to launch and during what times they will be effective

• Content Creations – In partnership with the brand the management team will create content that will promote the brands identity and reach the audience in the fastest way possible

• VIP & Celebrity Endorsement – If accessible to the brand and suitable for the brand management has the ability to work will celebrity and VIP’s for brand endorsements

• Fashion Week Representation – During fashion week, management can represent brands during events and online

• Blogger Engagement – Management team, if the brand wishes, has the ability to engage with bloggers to promote brand awareness

• Press Days – If necessary for public engagement management teams can arrange for press days for the brand to engage with press

o Push, 2016; Ltd, 2016; Social Media Management, 2016 An effective social media management team will contribute to the development of brand identity and brand reach by working with the brand and developing social media campaigns that relate to the decided upon brand image. This is needed for Exofitness due to the lack of consistent branding and campaign development. By employing a social media manager Exofitness will gain a knowledgeable employee that will aid the brand in reaching their target market through social media. Companies like Pure London, London Fashion Agency, and YogurtTop Marketing, offer fashion specific media managers who specialize in retail based brand social medias and will help will the above services (Push, 2016; London Fashion Agency, 2016). These services retail for upwards of 250 pounds sterling per month, and if brands wish to add specified ‘extras’ the price can reach upwards of 1500 pounds sterling (Pure, 2016; London Fashion Agency, 2016).


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3.1.a Marketing Mix Advantages The advantages to adding a social media manager to the Exofitness team are that the personnel would be trained in the position that they would be doing. They would also be connecting with the customer directly through the social media, allowing for feed back from the consumer on the brand identity and current campaigns (Rome, 2016). The following chart shows the marketing mix variables/advantages, the competitive advantages, and the value that adding a social media manager would add to the consumer:

Figure 6:

The employment of a social media manager will give Exofitness the competitive advantage of a convenience, cost effectiveness, a creative outlet to reach consumers, speed at which to reach those consumers, as well as control over the brand identity. These advantages will add value to the brands current consumers as well as attracting new target consumers by allowing easy access to the brand through the use of popular social media (Rome, 2016).

3.2 Website Redesign to Mirror Brand Identity One of the first places that consumers sees the identity of a brand is on

the brands website, because of that fact it must match what it the customer believes that the brand/owner is trying to portray and believes. Currently the


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Exofitness website is difficult to overly simplified, lacking in information about the products, and does not portray the image that is delivered on the current social media sites.

By updating the current website, customers will be able to see the brand identity that is delivered on social media, giving a consistent brand identity, as well as understanding the product in more depth. This will lead to more sales conversions for the brand, due to understanding. Updating the website can be done through many online website development assistants such as Square Space (Squarespace.com, 2016). This online website developer allows business to develop their users to a custom website, with custom domain names, from a selection of templates or completely from scratch (Squarespace.com, 2016). This is all offered to users at a price of $18 per month billed annually (see appendix 1).

3.2.a Marketing Mix Advantages Through updating their website Exofitness can offer their current

customer and their future target customer a better understanding of the brand identity. This would allow customer to relate to the brand. This will occur through the cost effective redesign of the website. The redesign will add value to the consumer by allowing them to have access to the product by understanding the product and the value of the product through the simpler and descriptive explanation of the product. This will make purchasing of the product more likely, as customer like to understand what they are purchasing before they complete the purchase (Posner, 2016; Sinclair, 2016).

The competitive advantage of the website redesign is that the company will have creative control over the look and identity of their image so that it will be able to match their social media distributed identity. This will allow for a unified image that will be presented to the consumer so that their will be no confusion on who the company is and stands for (Posner, 2015).

3.3 Colour Palate of Exofitness The current color offerings of the Exofitness range are very limited. They

currently have black, red, muted green, grey, and dark blue. These colors, save the black, are not the standard offerings of sportswear offered and purchased by


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consumers (Verdict, 2014). More popular colors that are purchased in sportswear are bright colors and neon colors (Verdict, 2014).

When consumers purchase sportswear they are looking into purchasing sportswear for active use they are looking for clothing that has reflective strips and is a noticeable color (Verdicts, 2016). Because of this need, consumers need for a variety of colors needs to be meet through a variety of new color offerings. If Exofitness were to offer a new color that were to be attractive to a younger consumer then likelihood to purchase the product would go up, young consumers are more likely to purchase bright colors in sportswear (Verdict, 2014).

3.3.a Marketing Mix Advantages This change to the Exofitness offering will be completed by the factory

that is currently located in Portugal where the products are made (Sinclair, 2016). These products can be changed by working with this factory and looking at the current offering of seasonal colors that are on trend. This can be done through the Pantone sight and catalogue that is offered (Pantone, 2016), or by looking into colors that are also popular in current sportswear trends (WGSN.com, 2016).

By adapting to this change Exofitness will be able to offer is consumer a new offering that they consumer will be more attracted to the popular and on trend colors (Verdict, 2014). This color change will be valuable to the consumers because they product will be comparable to other product offering in current branded and non-branded sports stores in color offering, specifically in respect to color range with the new addition of colors.


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4 Conclusions Exofitness. London is a new brand that has had small successes in its

short life span as a brand, these being it’s successful granting of a patent, and development of a product that their current consumers have taken into the market place with great acceptance. However, there are many things that Exofitness can improve on as previously mentioned, those being its lack of marketing through their social media platforms, their lack of uniformity on their current website that leads to a disassociation in brand identity, and finally the small range of color that leads younger consumers away from the brand due to the lack of choice. By solving these problems through the previously developed strategy the brand will be able to contribute to the extend their reach to new and developing market places, develop their brand identity, and target new customers. This will be done through the strategy consisting of three parts. These parts will be the hiring or contracting of a social media manager, the re-design of the Exofitness website to match the new brand image developed and portrayed through social media, and the development and release of new brand colors added to the Exofitness sportswear line.

These changes will allow the brand to draw new customers to the brand and develop a larger brand following and brand image. This will enable the growth of the brand and the development of the product image. This strategy is cost effect for the brand due to the limited investment that the brand would need to make in the social media manager on a monthly basis (Pure, 2016), the website re-design changes can be made on a need basis as time goes one (Squarespace.com, 2016), and the color adaption cost can be done only once, and then kept, if that is chosen by the brand. These changes can then be kept and adapted for the continuation and adaption for the brands growth into new markets as well the growth of the brand into new product lines, as developed by Sinclair (2016).

With these changes Exofitness will be able to grow and in the future be able to successfully expand to new markets including the United States, where the fitness market has also grown exponentially in recent years (IBIS World,


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2015). Exofitness can become more well-known brand with these simply and cost effective adaptations.


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5 Appendixes 5.1 Complete Squarespace.com Offerings

• Unlimited pages, galleries, and blogs with unlimited storage, bandwidth, and contributors

• Mobile-optimized website • Powerful website metric • Free customer Domain (with annual purchase) • 24/7 customer support • Fully integrated e-commerce • Sell up to 25 products • 2% sales transaction fee • $100 Google AdWords credit • Developer platform


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6 References

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• Brand of the month / 01 august 2013 sweaty Betty, the fitnessclothing

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