Seychelles by John Lewis Swimwear Essay

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Seychelles by John Lewis (Swimwear)

The introduction of a new collection can help the brand exploit market segments that have not yet been reached, but it can also raise a series of disadvantages, with an unsuitable strategy. The following pages will analyze the situation of John Lewis and will focus on presenting a strategy designed to introduce Seychelles on the market, a new swimwear collection.

Competitors

The retail clothing market is dominated by large brands, like Next, Debenhams, Reiss, House of Frasier, Whistles, and Zara. Each of these brands is differentiated in certain areas, but they also have similar traits. As a consequence, they have their own loyal customers, but are also able to attract other categories of buyers that shop from competitors.

The swimwear offered by Next is divided into two categories: regular swimwear and branded swimwear. Both categories include items like bikinis, swimsuits, cover ups, flip flops, and accessories. The main colors used for this collection include coral, white, pink, animal print, navy blue. The prices range from ?10 to ?140. There are more than 200 shops in the UK, located in shopping centers or in shopping areas, and customers can also benefit from the online store. Their promotional campaign is based on magazine ads, mailing lists and catalogues.

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At Debenhams, the swimwear collection is represented by categories like bikinis, swimsuits, tankinis, shoes, shorts, tops, dresses, skirts, cover ups, accessories. The main colors of the collection are purple, pink, white black, brown. The price range varies from ?10 to ?50 and above. Debenhams owns over 100 stores in the UK. Products can also be purchased online. The store's promotional campaign includes magazines advertising, mailing lists, and press releases.

John Lewis History

John Lewis was established in 1864 as a drapers shop. A few decades later, John Lewis acquires Peter Jones. In 1929, John Lewis Partnership becomes legal. In 1937, JLP expand the business, by purchasing the 10 shops chain Waitrose. The series of acquisitions continues with other successful deals.

Essay on Seychelles by John Lewis Swimwear Assignment

In 2001, John Lewis launched the online shopping site. Currently, the company owns 29 John Lewis shops, 228 Waitrose supermarkets, an online business, a direct services company, a farm and a production unit (JLP, 2010).

Products and Services

John Lewis offers a wide range of products and services. They are divided in the following categories: home and garden, electricals, women, men, beauty, baby and child, toys, sport and leisure, and gifts.

The most important services provided by the company include home design service, lingerie advice service, personal fashion advice, PC and TV installation, fitted kitchens, nursery advice, and delivery services.

Market Position

John Lewis is one of the most important retailers on the UK market. The company's ability to address products and services of almost any category allow John Lewis to satisfy the needs of numerous consumers.

Although there are several other stores that exceed the market share of John Lewis, this is because they have significantly more outlets on the market. For example, in 2002, Next accounted for 6.3% market share with 333 outlets, Debenhams accounted for 4% with 97 outlets, while John Lewis accounted for 1.8% with 25 outlets (Deutsche Bank, 2002).

However, John Lewis improved their market position each year. In 2008, the sales increased 5.6%, the operating profit increased 12%, like-for-like sales increased 5%, and the market share reached 19.3% (JLP, 2008).

Financial Data

Gross sales: 6,967 in 2009, 6,762 in 2008.

Revenue: 2,327 in 2009, 2,315 in 2008.

Operating profit: 146 in 2009, 199 in 2008.

Net profit: 358.9 in 2009, 320.4 in 2008.

Capital expenditure: 140.1 in 2009.

PESTEL Analysis

Political factors. Although the political environment is currently less stable than in the previous period, it is not expected to influence the activity of John Lewis. The changes that intervene in the political environment are not likely to affect consumption for the company's products and services.

Economic factors. The economic and financial crisis has affected the global economy, the UK's economy, and the activity of John Lewis. Given the fact that buyers' incomes have decreased, their consumption levels and habits have modified. Once the country's economic situation will improve, so will the situation of John Lewis.

Technological factors. Technology has a direct impact on the activity of John Lewis. Technological development in the past decades has alleviated the problems affecting the company's activity. However, technology comes at a great cost, which is further reflected in the costs experienced by the consumer.

Environmental factors also have a direct influence on John Lewis. Weather is the most important of these factors. The swimwear collection must be developed in accordance with weather in the UK. The collection can only be sold in the pre-season and during the summer season.

Legal factors are intended to regulate the activity of the company and to protect both the consumer and the company. The most important laws that must be taken into consideration by the company include consumer laws, antitrust laws, and competition laws.

SWOT Analysis

Strengths

Wide range of products

John Lewis offers services that competitors do not offer

Lower prices

Weaknesses

Lower market share

Reduced number of outlets in comparison with competitors

Reduced market coverage

Opportunities

International expansion

Threats

Competitors have greater financial power

Proposal for New Brand

The main aspect related to the new swimwear collection is represented by the colors that will be used. The colors that must be emphasized by this collection are white, light turquoise, variations of fuchsia, animal print, and combinations of these colors.

The range will cover all product categories: bikinis, swimsuits, flip flops, and cover ups. The collection should be developed following two distinct lines: a sport one, and a more sophisticated one.

The products for the second line should be different from what the brand offered in the previous collections. The products should be more elaborated in order to attract buyers that need this kind of swimwear.

The first line should be simple, but modern due to the palette of selected colors. This will attract buyers that are interested in a simpler, but fashionable style.

Objectives

The main objective of this collection is to attract new customers, in order to increase sales. This means that the collection must introduce new items that address market sub-segments that have not been addressed by the brand's previous collections.

Existing consumers must also be stimulated into buying more. This is where the promotional strategy interferes.

Another objective consists in positioning John Lewis as the most important swimwear provider.

Customer Profile

The main customer segment targeted by the new swimwear collection proposed by John Lewis is represented by young professional women, aged 20-35. These buyers take great interest in fashion, they arrange their shopping list after reading magazines like Red, Marie Claire, Grazia, Cosmopolitan, Harper's Bazaar.

Their clothing style is inspired by local and international celebrities like Cheryl Cole, Jennifer Aniston, Lauren Conrad, Olivia Palermo, Gossip Girl actresses, Victoria Beckham. Their style is also influenced by TV shows like Desperate Housewives, Gossip Girl, and other similar shows.

They spend their holidays in Marbella, St. Tropez, and the Caribbean.

They do most of their shopping at Next, Debenhams, Reiss, House of Frasier, Whistles, Zara, John Lewis.

These customers have a medium to high income, they are educated, and they have a very active social life. Clothes are very important to them. They feel that clothes represent them and that they are a reflection of their personality. This is why they want their outfits to be original, following the new trends. They do not reject higher priced items, because they want their purchases to reflect their social and financial status.

Strategy

Product Strategy

The main feature that the strategy for this collection will focus on is represented by variety. The collection must cover all types of swimwear items, in a variety of colors, sizes, and models, so… [END OF PREVIEW] . . . READ MORE

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