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Marketing Strategy Comparison.docx - 1 Marketing Strategy...

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Unformatted text preview: 1 Marketing Strategy Comparison Name: Course Number and Name: Semester and Year: Date: 2 Abstract The following paper will analyze the business marketing practices of two leading retailers in the clothing industry, Pyer Moss and Daily Paper. It will also seek to compare their different marketing strategies as per their website, as well the product quality, design and general competitiveness they offer. Keywords: demographic, sales, marketing, information, customers 3 1. Overview of the Retailer Daily Paper is a Dutch streetwear brand that is in the apparel industry. Its headquarters are based in Amsterdam, and are inspired by African designs and patterns. It was established in 2012, and uses modern designs to appeal to younger demographics looking for non-formal clothing. It also offers accessories and different designs for different seasons. The CEO of this company is Hussein Suleiman, and was founded by Hussein Suleiman, Jefferson Osei and Abderrahmane Trasbini. The head of marketing is Susan Steverink. They have an online store that offers delivery and are sold in over 29 countries, in over 200 stores that stock multiple brands. Their online presence makes it easy to promote to their young consumers due to their access to the internet., and they also have customer care lines that deal with any issues customers may face. There are 3 flagship stores, located in Amsterdam, NYC and London. The addresses are provided, but there are no links to the individual sites. A client can use this link to access the directions for each store. Pyer Moss is American apparel company that produces clothing for both men and women. Its headquarters are in New York, America. It was formed by Kerby Jean-Raymond in 2013. It seeks to fuse political and social issues with fashion, thereby making a statement with its designs. The Vice president of Sales and Marketing in Pyer Moss is Christopher Rucker. It has several stores all over the world, with 3 in North America, 10 in Europe and 3 in Asia. It is however sold on a limited basis at high end boutiques. They also produce collaborations with other brands such as Reebok, which are sold in pop-up stores all over the world. These stores stock the clothing on behalf of the brand, thereby distributing it to a wider range of consumers. Each of the stores has its website listed on the stores section of their website and can be accessed through . 4 2. Comparison of Key Target Consumer Segments a) Demographic segmentation variables For both brands, they have curated products that appeal to younger people, which is why they focus on casual wear apparel. They also both have creative and colorful designs that are suitable for non-formal events. However, they differ in price points. A t-shirt on Daily Paper retails for 59.95 euros, while a similar t-shirt on Pyer Moss retails for $125. In comparison, 1 dollar is 0.84 euros, meaning that the Pyer Moss t-shirt would retail for around 105.55 euros. They both cater to men and women, but Pyer Moss has more androgynous outfits compared to Pyer Moss, which has a male and female section with completely different styles of outfits. While they are both casual wear brands, Pyer Moss is more business casual while Daily Paper is very relaxed. Both seem to be targeted to young black people as well, as the choice of models. b) Psychographic segmentation variables Pyer Moss targets the young creative professional who is interested in social causes, as its clothes are often smart business casual while also appealing to those who enjoy exclusive clothing and sportswear as is evidenced by their ‘sculpt’ shoes. On the other hand, Daily Paper tends to appeal to young people who want to express themselves through creative designs and want to present themselves as unique while wearing exclusive hard to get pieces. Item such as the reslider sandals show that this is highly causal wear, and can be for teenagers and young adults in college, who are not in any formal working capacity. c) Behavioral segmentation variables The clothing on Daily Paper appeals to young people in casual settings such as the beach or skate parks. The clothing also has large legible prints and colorful graphics that are meant to 5 stand out, while the large brand writing indicates the desire for their peers to recognize their usage of the brand, which is common amongst young people. It subconsciously denotes their lifestyle, since brands are often associated with certain traits and demographics. In my opinion, this age group is likely to wear what is deemed acceptable by their peers, hence the branding helps push sales. Pyer Moss appeals to the young professional who works in creative or social industries, and would like to express themselves through their clothing. Pyer Moss doesn’t have any large legible writing of the brand name on many of its clothes, as it may prefer to be distinguished by its style. As such, the brand is more for people who want to stand out. As such, the brand releases a specific number of items which later go out of stock, and a new season brings new clothing, which adds to a feeling of exclusivity. 3. Comparison of merchandise The Daily Paper website has divided its merchandise into several categories such as menswear, womenswear, collections and accessories. In each category, there is a wide assortment in terms of color, design and types of clothing. After this major category, there are hoodies, sweaters, skirts, dresses, tops, pants and suits, all depending on the main category chosen. Within each subcategory, there are several selections, such as the tops category for women which has over 20 options all diverse in terms of color and design such as halter tops, t-shirts and crop tops. The models height is also noted in order to allow the clients to assess how it would look on them given height differences. Pictures are also given of the model striking different poses, as well as the clothes alone, in order to give an idea of what they look like. In addition, there is information regarding the material and information regarding returns. The products also seem to be well stocked, with none in the women’s tops sections being out of stock. 6 Pyer Moss also boasts several categories namely menswear, womenswear and Reebok by Pyer Moss. They are then divided into subcategories such as dresses, jackets, tops, bottoms and footwear. Unlike Daily Paper, there is considerably less variety, but more color and patterns. For example, the dresses section under womenswear has only 6 dress options, five of which are sold out. The pictures are well presented, with the models doing two straight poses. The client is given an idea of their height, in order to allow for the clients to estimate how it would look on them. The company leaves the sold out items on its site most likely in order to provide a feel for what they produce, and create a sense of urgency and exclusivity for the consumer, who is not sure the clothes will still be in stock later on. 4. Comparison of product quality In my opinion, the pricing on Daily Paper firmly sets it as a mid-tier brand, with prices that are affordable and not too expensive. It is a private brand, since it sells under its own specific stores. It can therefore be described as a store brand. From my assessment, the products are good quality and material for everyday wear and use. They might last the user a few years with minimal damage if used properly. Pyer Moss is more high end brand, and is a private brand, with its products being sold under specific retailers. Its clothes are good quality but more expensive, likely due to the materials. They are also good for everyday use, but seem like they would last longer. Some of the jackets are made from good quality leather, which if often very long lasing and high quality. If used carefully, these products can last a long time. 5. Comparison of prices a) Price comparison table 7 Pyer Moss Product Embroidered Price $140 Daily Paper Sale prices N/A logo cropped turtleneck Honcho $1275 N/A Sale prices N/A rerise top Black ebomb 199.95 euros N/A 89.95 euros N/A 99.95 euros 49.95 euros 59.95 euros N/A jacket $375 N/A cropped jean Cropped Price 59.95 euros monogram Leather jacket Pleated slim Product Black Black Etape Flare Pants $650 N/A Khaki Brown corduroy Evie Type trucker jacket Oversized Sweater Chambray $150 N/A short-sleeve Blue Refarid tee T-Shirt As per the prices, it is easier to see that Pyer Moss has higher prices (exchange rates accounted for). There are also no sales on the Pyer Moss website, most likely since it relies on limited edition collections. The above products are very similar in design and type, hence why I have chosen to compare them. The Daily Paper has more affordable items which are more in stock, and are rarely a limited collection. They also both offer items that are within the price range of the middle class, hence they can appeal to a wide market. b) Pricing methods 8 1. Odd-even pricing: is “a form of psychological pricing with aa numerical value that is meant to seem less than it actually is” (Campbell, 2020). The Daily Paper uses this extensively, with prices such as Chambray Blue Refarid T-Shirt going for 59.95 euros, which may seems like just 50 euros to a customer at first glance, but is actually 60 euros. Pyer Moss does not use it to the same extent, but also uses prices that may seem less at first glance. For example, the Honcho Leather jacket sells for $1275, and may appear to a consumer as being just 1200$ at first, without them considering the 75$. 2. Markdowns: is where “the original price of goods is decreased permanently as opposed to temporary changes in sales” (Reyhle, 2009). Both of these retailers do not use this strategy, but Daily Paper uses occasional sales such as putting a discount on the Khaki Brown Evie Type Sweater for 50 euros. Markdowns are commonly used in highly competitive markets where stock sometimes is not moving to allow for low sellers to sell quicker. 3. Coupons: A coupon is “a document that is redeemed for discounts in various specified stores” (Market Business News, 2020). None of these retailers used the concept of coupons to increase their sales, most likely because Pyer Moss does seasonal collections of their products. As such, once a season ends, they no longer produce that particular clothing. The Daily Paper also does not use coupons since their target audience is willing and able to spend the stipulated amount, and are not familiar with coupons. 6. Comparison of customer services 1. Customer service information: Pyer Moss has a contacts link at the bottom of their page under ‘About’, with their physical and online addresses listed, as well as their social media handles. On 9 the other hand, Daily Paper has this information under its service tag, which is accessible at the bottom of the home page. There are contacts and returns policy listed there as well. 2.Types of customer service information: Pyer Moss has information available under the terms tag where it lists its return and refund policy, as well as its shipping policies and charges. The data is concise and detailed, hence the clients can read through before making any purchases. The Daily Paper has similar placement, but they are under the service tag, and offer information on shipping costs and duration too. 3. Return policy: Daily Paper has a return policy of 30 days after delivery and provide refunds or store credit. “They are also expected to be unwashed and have the tags intact, and shall deliver them to the warehouse” (Daily Paper, 2021). Pyer Moss has a return policy as well, which is done after email authorization, and should be requested within 7 days of order delivery, after which the refund takes 7-10 business days to reflect in the client’s account. They both require that the clothes are returned in good condition, and that they are inspected before a refund is processed. 7. Comparison of website navigation The Daily Paper website is very interactive, and allows for a visitor to view sales offers, recently released merchandise and other company information. It is easy to navigate since it has more links with colorful pictures that grab attention. According to research from Pyer Moss (2021), the site has a sidebar menu, which is followed by large colorful banner that informs the visitor when the next season collection is dropping, in this case 3 pm on July 10th in New York. The banner shows a luxurious mansion with people sitting in a garden with a stage between them. There are red and yellow flowers as decoration, which add to the air of sophistication. 10 8. Unique or interesting features The Pyer Moss website is very nicely done since it grabs the attention of the viewer, and fully focuses on an item, as opposed to other sites that sometimes have overwhelming information. It provides a smooth and clean design that appeals to modern clients who do not like overcrowding and prefer minimalism. The Daily Paper is also well-designed and uses color blocks that help increase the visibility of each item. It also uses large banners that showcase their models, and provide links to both men’s and women’s wear on each banner. The different banners have different items such as sales and different collections, hence providing differentiation for the client and guidance to those who may be lost. 9. Recommendations for retailers In this case retailer A is the Daily Paper, while retailer B is Pyer Moss. a) Recommendation 1 for retailer A Retailer A can improve their website by providing pictures of their more colorful pieces, and contrasting them with the darker or plainer clothing. In my opinion, this draws the customer’s attention. More color contrast and focus on the clothes as opposed to the models faces would help. The color contrast provides focus on the models clothes and how they fit, thus giving the viewer a chance to visualize themselves in those clothes. A young audience requires something that captures their attention and that of their peers, in order to appeal strongly to them and retain their attention. b) Recommendation 2 for retailer A 11 Retailer A can improve their website by posting their on sale items at the top of the page, since their clients are younger and may be on a budget. The most popular items can also be put on sale, since these young people are more likely to want to fit in and dress like their peers, hence popular items and their variations should be posted. They can also enjoy buying several outfits that are currently in fashion, so providing them with this information would help boost sales. This behavior has been noted amongst young adults, who want to feel a sense of belonging stronger than that which older people may feel. c) Recommendation 1 for retailer B Retailer B can improve their website by providing a few more links in the sidebar, such as an additional drop down menu that shows the sub-categories such that the client can see what is available before clicking the link in order to see what sub-categories there are under menswear, womenswear and the other collaborations. This would allow faster navigation and usage, and provide more exposure to areas that were hidden in the sub-category menu. Users who would be interested in buying gifts for others can also buy items they may not normally use. d) Recommendation 1 for retailer B Retailer B can improve their website by adding a few more details such as the items that are almost out of stock in order to push sales. This is because the clients may want to get the exclusive items before they run out, and this would give them a sense of urgency. They can also allow for pre-orders where they allow payment for items pre-viewed on the site before their production and dispatch. This strategy would increase its exclusivity and create more desire in those who would be interested in seeing the clothing first hand. According to research from 12 Chitrakorn (2021), this method has been used successfully by several brands especially those in the high fashion world. 10. Epilogue I have learnt that marketing involves a lot of factors apart from pricing, such as proper branding and the use of color. Both of these brands target specific demographics in terms of age and sometimes ethnicity, hence can use this to achieve brand loyalty. The use of color also helps the clothes and websites stand out and evoke certain emotions in the clients. In conclusion, a brand requires to understand its target market in order to succeed and solidify their niche in the market. 13 References Campbell, P. (2020, February 21). Odd-Even Pricing: Examples, Definition, and Psychology Behind It. Profitwell. Chitrakorn, K. (2020, October 12). The pre-order model: Why it’s working. Vogue Business. Daily Paper. (2021). Daily Paper. Daily Paper Worldwide. Market Business News. (2020, January 27). Coupon - definition and meaning. Pyer Moss. (2021). Pyer Moss. Reyhle, N. (2009, January 19). Markdowns vs. Discounts – What’s the Difference. Retail Minded. ...
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