Stitch fix target market

Executive Summary

As Stitch Fix, we have come up with a 5-year plan describing how we will achieve our marketing objectives. Stitch Fix has been in the online subscriptions industry for two years now and the progress has been encouraging. Our target is college graduates and young career women who despite their busy schedules are still looking classy and fashionable. The online shopping experience we give our clients is fully personalized to meet the needs of each and every client. Despite performing admirably in the first two years of our existence, our market share is still considerably low. We intend to gain a market share of 40% within five years and we have come up with a marketing plan to help us achieve our market objectives. Our main marketing objective as Stitch Fix is to provide our customers with quality products and accessories at affordable prices. This is achievable and it will enable us grow considerably and as such increase our market share. Our operation model will also undergo an audit so that all shipping and delivery transactions will be streamlined. Reduced operational costs will enable us to comfortably offer our products at prices lower than those offered by our competitors. Diversification into men’s clothing and plus size fashions will also expand our market and increase the company’s operations of scale. The reason the marketing plan is appropriate at this time is because of the gradual increase of players in the online subscriptions industry. With more players, it is important to re-evaluate our business operations so we can identify a niche in the market. As such we can employ analyzed differentiation and positioning strategies to help occupy and establish ourselves in the specific niche market.

Situation Analysis

Market Summary

The primary target customer of Stich Fix are college graduate, careered women in their 20’s to 40’s located all over America. The secondary target are the women who are not necessarily career focused but are willing to dress fashionably as well as ladies who are not fashion savvy but would like to dress trendy. The target geographical area for StichFix is all over United States. By utilizing internet as a platform and home delivery service, Stich Fix can serve domestic customers of all race and ethnicity throughout the country.

Stich Fix has different tiers of brand and design combination so customers are in control of their own expenditure. This allows flexibility to reach customers of various income range. The median income of targeted customers are over $40,000 per annum.

The focus of Stich Fix is entirely customer centric. Any online clothing store can provide branded clothes but Stich Fix is not just about clothes, it is about personalized experiences customers are going to receive. The customer provides the information about what their preferences are in regards to color, materials, design, style, sizes, and the frequency of the delivery. That information is used to design the clothes that are specific to that particular customers’ choices and are delivered to their door as often as they would desire.