Bathing Suits

FASH 5006 Studio Design Level 6

Ð'* For this assignment students will research and compose a target market report for the apparel market category they will be designing for.

Summary

Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan. Accurate market assessment and development of an effective plan is critical to the success of both new and existing businesses. The market impacts and directs all aspects of the company's activities and ultimately will lead to success or failure of the business. In developing a market plan, your primary functions are to understand the needs and desires of your customer, select or develop a product or service that will meet customer needs.

____________________________________________________________

____________

Market Research Report Due Ð'- Week 2 (worth 5% of final mark)

Students will Research & compose a market research report. The report

Steps to completion:

1. Market Analysis: Overview of North American apparel market:

□ Establish your Category

□ Price zone

□ Important market trends to watch

□ Describe your initial design concepts for your product line

What product or service are you selling?

An important aspect of market analysis is to ensure that the product or service meets the market (customer) needs. Product or service focus must be the customer.

Issues to address are:

Ð'* Specifications of all your products and or services and key features relative to what prospective buyers in your target market are saying they need.

Ð'* Comparison with competitors and how customers perceive your product relative to others available.

Ð'* What are the current trends, what stage of maturity is the product life cycle at?

Ð'* What regulations apply to your product or service?

Ð'* What packaging is required?

Pricing

The objective is to maximize profits while remaining competitive in the marketplace. Pricing can be based on either the cost price or market price (What will the market pay?). Regardless of the pricing method used, it is critical to know all of your costs involved in delivery of your product or service to avoid possible underpricing and operating losses. If the market will not support a price level sufficient to cover cost, it will be necessary to investigate whether costs can be lowered or alternatively, it may be necessary to abandon your plans to proceed.

Issues to consider are:

Ð'* What control do you have over the product price (e.g. exclusive product, no competition, high market demand, etc.)?

Ð'* What are competitor prices and how do they price their products?

Ð'* What price and sales volume are needed to achieve profit objectives?

Ð'* Can you sell your product at different prices into different markets?

Ð'* Can you maintain your prices over time and what do you expect to happen to competitors prices?

Ð'* Are your prices quantity sensitive?

2. The consumer Market:

□ Description of market (include statistics, charts, graphs etcÐ'....to describe market share, growth, economics

□ Description of consumer (use psychographics & demographic research

What is your target market?

Accurate identification and analysis of the target market enables you to develop an effective overall marketing strategy. The information will assist in determining business size (output requirements), distribution channels, pricing, promotion strategy and other marketing decisions.

Target market issues include:

Ð'* What is the overall market size? Number of potential customers and physical boundaries?

Ð'* Which segment of the market is the most attractive in terms of future growth potential, ease of entry, competition, profit potential and overall risk?

Ð'* How do products generally get to the customer?

Ð'* What is the current dollar value or quantity of product/service being sold into each segment of the market?

Ð'* What social, technical, environmental or economic changes are taking place within the market and how will they impact sales?

Who is your customer?

Knowledge of the customer enables you to determine the market size and what determines their buying decision. It provides information that will assist in choosing a location, determining product or services to be offered, establishing pricing and planning a selling strategy.

Key issues to consider are:

1) Who will buy your product? Primary and secondary target groups.

2) Where does the buyer live and what is their profile?

3) What factors influence the decision to buy?

4) Who is involved in the purchase decision?

5) How often will buyers buy?

6) Where do they buy, when and how much do they buy?

7) What are the buyer's preferences and needs?

8) Are customers loyal? Can long term relationships be built?

3. Competition: Visit your potential retailers