Helen’s, a prestigious fashion boutique situated in eastern Sydney, has experienced a decline in sales for several reasons. Customers have expressed that they perceive the business as outmoded and no longer meeting their requirements. Additionally, the presence of fierce competition in the vicinity has led to pricing difficulties. Moreover, Helen’s target market comprises women aged 50-65, which no longer aligns with the prevailing demographic of the area that now skews towards a younger population. To enhance its performance, Helen’s needs an encompassing marketing plan that provides effective improvement strategies.
Helen can enhance its performance through the development of a market plan. This plan should consist of an executive summary, a situational analysis, the establishment of market objectives, identification of the target market, and the creation of marketing strategies. Subsequently, the plan should be implemented, monitored, and controlled. The business is currently experiencing declining sales as consumers perceive it as outdated and no longer meeting their needs. Additionally, strong competition in the area has resulted in pricing pressure.
Helen’s, a clothing boutique, needs to make various changes to regain its large market share in the area as its target market of 50-65 year olds no longer dominates. These changes include expanding the target market to include both young and old women, adopting new advertising techniques, and revamping its stock. The situational analysis reveals that Helen’s is facing pricing pressure due to strong competition in the area.
Helen’s is a boutique that specializes in selling luxury clothing, resulting in higher prices. However, during economic recessions and holiday seasons such as Christmas when individuals prioritize wise spending and gift purchases, the majority of consumers tend to favor more affordable stores offering comparable products. Consequently, this shift in consumer behavior, coupled with changing demographics within the region, has caused the business’s target market to occupy only a limited portion of the area.
Having younger people in the area who are not the target market of the business can lead to lower numbers of customers and potential loss in the long run, undermining the purpose of the business’s existence. The products offered by the business are not suitable for both the younger generation and older women. In recent years, older women have been seeking ways to appear younger, including plastic surgery, anti-aging make-up products, and wearing younger-style clothing.
Helen’s caters to 50-65 year old women, but these women desire more youthful attire. Following a SWOT analysis, the findings are as follows: Strengths: •a boutique offering high-end fashion with good quality merchandise •utilizes surveys to effectively communicate with customers •business receives no complaints about product or service quality Weaknesses: •outdated product selection •not aligned with the preferences of local population •struggles to gain significant market share due to competition
Opportunities: The business aims to improve by understanding consumer perception. Identifying areas that result in financial loss will enable making changes to boost revenue.
Threats: Competitors are undercutting Helen’s prices, taking advantage of her high pricing. Additionally, the economic recession is causing potential customers to avoid high-end boutiques with high prices and choose more affordable stores offering similar products.
Establishing market objectives:
S-specific: •Increase Helen’s market share to boost business sales and profitability
•Expand or modify product range to meet changing consumer preferences and demographics in the area
•Implement effective advertising strategies
M-measurable: •Track monthly sales after implementing changes using charts. Consistent revenue growth each month will indicate successful implementation of new strategies
•Seek consumer feedback through surveys or in-store conversations to evaluate business performance
A-achievable: •The goals the business aims to achieve are within reach. With its long-standing presence and current financial stability, the business has the resources to pursue these goals
R-realistic: •The business objectives set are realistic and can be accomplished within a short timeframe
T-time: •The business aims to achieve its objectives within one year, leveraging effective advertising methods to accomplish these goals in a matter of months.
Identifying the target market: the business’s target market was previously limited to 50-65 year old females. However, considering the current demographics of the area, this approach is no longer appropriate. To become more inclusive, the business plans to expand its market segment to include younger females as well. The clothing range will now cater to females aged 20 to 65. Although the business has a reputation for selling clothing for older women, it is important to retain some of the original clothing range.
An expanded range that caters to women of all ages is more suitable for the changing demographic of the area. The marketing strategies will include effective advertisements showcasing Helen’s fashion boutique as an excellent place for young people to buy prestigious gifts for their mothers or grandmothers. Additionally, the business will promote its new product range specifically designed for younger women.
Creating membership cards that provide discounts to customers for each purchase can help establish a loyal customer base, leading to repeat visits to the store. This sense of involvement is crucial in gaining customer loyalty, ultimately resulting in higher revenue. Lowering the prices of goods also serves as an incentive for more customers to choose the store, especially during the economic recession when people are actively seeking affordable products.
Implementing strategies to develop cheaper products without compromising quality can attract customers and ensure the business’s success over its competitors. Helen’s management must prioritize implementation, monitoring, and controlling of these strategies to achieve the business’s objectives within the desired time frame. It is crucial for Helen’s boutique to maintain the highest quality standards in their products.
In order to effectively implement the marketing strategies, it is important to secure sufficient funding. It is essential for the business to continually monitor its progress by analyzing sales at Helen’s boutique across different age groups and seasons. Another crucial aspect of monitoring and controlling is conducting market share analysis.
The business management should consistently compare its sales performance with that of competitors to ensure the strategies remain current. Ongoing innovation and adaptation will enable the business to meet evolving consumer preferences and maintain a significant market share. By adhering to the marketing plan, the business can have a clear direction, ultimately surpassing competitors and reclaiming a larger market share.
