Urban Outfitters Continuing Case Study: Marketing a Business

In my opinion I don’t think that Wal-mart would be able to create a trendy counterculture because it sales clothes at a lower price. Trendy clothes would not be effective for them because the cost associated with trendy clothes would not be profitable. Wal-mart shoppers are looking for a bargain when they go shopping at their stores. Wal-mart is known for their lowering prices on items in their stores called the Roll Back Price. “Wal-Mart said last week that it is stepping up price cuts, although it wouldn’t specify how much it is boosting its typical weekly discounts designed to lure customers. ” (Anderson, 2010, para 2).

They also buy their merchandise in bulk as oppose to small quantities. While Urban Outfitters buy their merchandise in smaller quantities and there items are priced higher which is why they can create a trendy counterculture. When speaking of Sears they are not on the same line as Wal-mart considering they do not offer their customers price cuts such as roll back prices. But they do buy their merchandise in larger quantities then Urban Outfitters. Sears prices are high when compared to Wal-mart but they offer designer labels that are not offered at Wal-mart. But they also mass produce their items and buy in bulk.

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The items they sell in their stores are geared towards all customers and not one specific customer. I don’t think that they would be able to sale merchandise that’s for a specific group of people and continue to make profits. Competition is a huge problem for businesses and retail stores for the most part are dealing with this issue during the recession period. Sears has to try and compete with JcPenny’s and Khols and as a result of having to compete they have plans to close stores. “Sears plans to close 8 stores in April and May, laying off hundreds of employees. ” (Cardona, 2010, para 1).

So just think how many stores they would be forced to close if they really tried to copy Urban Outfitters way of business that’s been profitable for they stores. It’s not remotely possible for Sears or Walmart to try and enter a niche market and survive it they attempted this I believe that it would be a disaster for their business. Question #2 – Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. Examples of big box stores are Wal-mart Super Centers, Costco, and BJ’s. These stores buy in bulk unlike Urban Outfitter’s who only buy small quantities of merchandise.

Wal-mart would not be able to sell merchandise identical to Urban Outfitters because they buy large quantities of merchandise that’s geared towards customers trying to save money. “Big box stores have a large amount of space making it easier for owners to bring in bigger quantities of industrial goods. ” (Wikipedia, n. d. , para 2) Costco and BJ’s sale wholesale items and their customers buy in bulk trying to save money instead of going to their local grocery store. I do my shopping at BJ’s and from my experiences I have noticed that I save more money buy shopping with them then at my local grocery store.

What I may pay for 2 of the same item at the local grocery store, I can buy in bulk and save a couple of dollars. Costco and BJ’s stores offer lower prices just like Wal-mart and customers are looking to save money. Urban Outfitters customers are not looking to save money they are looking for the trendy items offered exclusively at their stores. Question #3 – Identify at least three reasons why exclusivity is valuable. One reason why exclusivity is valuable would be not having competition from other retailers.

If you are selling merchandise that can only be purchased from your stores you don’t have to compete with other stores. Customers can’t go to another store to get the merchandise so there for they can’t take business away from you. An example of exclusivity would be the cell phone industry. Customers are happy to purchase the newest cell phone at any cost even if the provider’s service isn’t that great. “Apple has helped AT&T bring in and keep customers who are not even happy with their service, but find the device and operating so compelling that they are willing to put up with substandard service. (Miller, 2010, para 2). This just goes to show you that people will be willing to spend their money for exclusivity. Even though they are not happy with the services AT&T are providing because they are the only provider that offer the iPhone they are willing to not be happy and have the latest gadget offered in the smart phone industry. Having a product that stands out from others would be another value of exclusivity. Offering customers a product that high in demand but can only be purchased at your store would generate a lot of business.

For starters you know that you have the hottest item on the market and in order for customers to purchase the item they would have to come to your stores. Given the fact that it may be in high demand you wouldn’t even have to really market that item because it would market itself. Previous customers would spread the word on where they purchased the item. Take for instance tennis shoes which can be exclusive and in high demand. Footlocker House of Hoops offer exclusive tennis shoes to their customers that can only be purchased at their House of Hoops stores. House of Hoops exclusive limited edition products will be available for purchase.

For the opening, 108 pairs of the Zoom LeBron V China Edition were available to consumers, this is the only place in the United States where they are available. (Yu-Ming, 2007, para 1). Guys will make sure they get the hottest tennis shoe out and they know when they will hit the stores and be in line to get them no matter how much they cost. My son is a prime example of that because he makes sure he has every new tennis shoe that comes out. Market shares is also valuable when speaking of exclusivity because when you have merchandise that’s high in demand you’re get high profits off of that item.

With higher profits market shares will rise. As I stated before about AT&T and the iPhone “[A]pple sold about 43 million iPhones globally from June 2007 through the end of 2009. During the same period, AT&T’s subscriber count increased by about 22 million, implying more than a 2% rise in market share, with the iPhone driving a significant part of the increase. ” (How Loss, 2010, para 3). When you increase your market shares then you know that business is moving in the right direction instead of not getting profits and with exclusivity you know that market shares will increase with outstanding sales.

Question #4 – Senk says that shopping is largely entertainment. Do you agree or disagree with him? Explain your answer. I would have to agree with Senk because shopping is very entertaining to me. When I go shopping I look at it as me being on a mission to find the bargains I may be seeking. I know what stores I have in mind to go in and what items I can purchase at that particular store. I can shop for hours at a time going from one store to another and will be enjoying every minute of it whether I’m in a car or using public transportation.

Even though shopping can be considered entertainment, for some people it can be very addictive. “For most people, it means some new clothes for work or a small trinket for a friend. For others, however, shopping is much more than an enjoyable pastime, and in some cases, it is a real and destructive addiction that can turn into a financial disaster. ” (Hatfield, n. d. , para 2). As I stated before I agree with Senk in reference to shopping and entertainment but when it becomes addictive in no way can this be, entertaining when you’re in a bad financial situation.

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