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Case Study
MARKETING ANALYTICS: Case Study Name: ____________________ © Stephan Sorger 2013; www.stephansorger.com Date: ________________________
Case No. Chapters Case Title
4 4 Competitive Analysis: Casual Clothing Market
Background: You are the marketing manager for Acme, a new brand of casual clothing. You compete with several established companies in the $1.4T global apparel market. Here are but a few:
Abercrombie American Eagle Banana Republic Gap Hollister
J. Crew Old Navy Ralph Lauren Urban Outfitters Zara
Acme is a new brand and has the ability to “fashion itself” into the company it needs to become to be successful. What it needs is a direction, and executive management is looking to you to provide it. 1. Select three competitors and enter their information in the Competitive Comparison Framework below.
Competitive Attribute Competitor: Zara Competitor: Competitor:
Market Share/ Revenue
$8B Zara/ $12B Inditex (2008)
Messaging
High fashion/ Low cost
Competitive Advantage
Skill at rapid international expansion
Products Constantly updated
Pricing Low
Distribution Sexy retail environment
Promotion Drive traffic to retail store
2. Conduct a SWOT-PEST analysis for the three competitors.
SWOT-PEST Competitor: Zara Competitor: Competitors:
S: Strengths
2008: world’s largest clothing retailer
W: Weaknesses
Brand awareness still somewhat low in U.S.
O: Opportunities
Capture market share from fading Gap sales
T: Threats
Might overextend itself from aggressive growth
P: Political Possible new tariffs to discourage imports?
E: Economic Poor economic climate hurt 2007-2011 sales
S: Social Ever-changing fashion fads; skinny jeans out!
T: Technological Increasing emphasis on use of bio friendly fabrics
3. Identify three candidate market opportunities using the table below, then indicate how you select a winner.
Market Opportunity Opportunities: Zara Acme Candidate Market Opportunities
New Market Segment Sell clothing to Haute Couture market segment
Go To Market Approach Offer exclusively local- manufactured clothing
Differentiating Functionality
Garments made of bio- degradable fabric
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