Barriersto new entry; Barriers to new entriesmeans threat of new entry competition. However Boden itself a well-establishedcompany so the threats for new entry is very low. Even though there is veryless possibilities for new entry to replace the brand, still awareness shouldbe taken because of growing competition. Buyerpower; according to Porter (1979) the mostwell-known factors of buyers power in industry is the force down prices anddemand higher quality.
Nowadays growing competition in online shopping marketbuyers have many option product as per their demand. However Boden being itselfa brand it will be hard to lose loyal customers. Supplierpower; the stronger power of supplier canaffect the company in negative ways as suppliers can limit the condition onwhich business is conducted.
As mentioned by Porter (1997) increasing pricesand reducing the quality of its products are potential means used by suppliers.Some companies like Boden exports their supply chain in developing countrieswhere labor cost and the cost of raw materials are very low so, the company stillsoperate in profit even with the offers and discounts. Threatsto substitute; threats to substituteoccurs when buyers have option to switch to another product that offer the sametypes of product. Most of product are replaced due to offered pricedifferences.
However it would be difficult to substitute the product with highquality like Boden, but still there are many branded companies like Zara andDesigual which can create tough competition for Boden in terms of substitution.Competitionrivalry; Boden has many competitorcompanies, so the competition rivalry is very high. According to Porter (1997)competition rivalry refers to this force as the “jockeying for position” asthis force is mainly about using tactics such as price competition, advertisingslugfests and product innovation in order to assume a fixed position in theindustry. The stronger the proceeding forces interact the stronger the rivalrycompetition will be. Market SegmentationThemain objectives of marketing segmentation is to set specific customers for theproduct.
It helps to set effective target for a product. It specify thecustomers according to their character. This marketing segmentation are dividedin four segments, demographics, geographic, psychographic and behavior segmentation.In terms for fashion industry market segmentation is a major factor whichconsists of customer’s behaviors and their interest.
Where establishing newproduct this analysis method should be evaluate. As Boden is aiming to expandtheir business internationally like USA, where people with different behavior andreligion are stable, this segmentation will help to achieve the targeted goals.Demographicssegmentation; the segmentationdivides the customer according to their age, gender, religion, income andfamily. As for the Boden, the company offers a mass product for men, women,teenagers and babies. The company segments it customers according to age andgender. Geographicsegmentation; the segmentation separatetheir customers according to their cities, religion and where they live. Thissegmentation divide the customers so that the company could know the differentcustomers behavior for purchasing the product. If the company is operating innew countries it is important to recognize this segmentation to know what typeof product will benefits the company.
Psychographicsegmentation; this segmentation helpscompany to divide their customers according to their behavior, attitude, valuesand field of interest. All customers are not, different customers have differentchoice of product or fashion trend. So this segmentation helps to produce aproduct as per customers need and satisfaction. Behaviorsegmentation; having a loyalcustomers for a company is major means of success. This segmentation dividestheir customers according to their brand loyalty, benefits, and attitude towardproduct. For the brand Company like Boden, it will be beneficial to understandthis segmentation for profitable future. Target marketForthe new product the marketing target will be set as:Men’swho are athletics, people who do workout in daily basis.
The product will focusespecially for the men aged between 23-35 who like being physically fit. Marketing objectives Afteranalyzing market analysis we can now redefine the objectives of marketing andhow it fits to the business. Marketing objectives are the strategy which areused for achieving the organizational goals. To have an effective business theobjectives should be SMART oriented (specific, measurable, achievable,realistic and time bound).
Themarketing objective for the Boden are as follows:* To Increase sales* Build brand awareness* Enter new marketinternationally * Target customers* Increase profit