To: Mr Price F1
Date: 13 May 2025 F2
Topic: USING MARKETING TO GAIN A COMPETITIVE ADVANTAGE AND BUILD A
STRONG BRAND F3
Compiled by: Business Consultant F4
F5
Introduction:
Intro does link
Achieving a competitive advantage in the clothing industry requires a deep understanding of
both consumer behavior and market dynamics, where a brand's marketing mix plays a pivotal
role. Brands must differentiate themselves through a combination of product innovation,
effective pricing strategies, strategic distribution, and compelling promotion, all working to
reinforce the brand.
Marketing
Marketing can be defined as the ongoing activities of the business to reach the target market
(LSM) and the methods the business utilises to connect and engage with its target market.
QP
• In order to formulate a Marketing Strategy, a five-step process has to be followed:
1. Perform an environmental scan
Because the fashion industry is highly dynamic environment. MOT
An environmental scan helps a retailer understand current trends (e.g., sustainable APP
fashion, athleisure), economic conditions affecting consumer spending (e.g., inflation
impacting luxury item purchases), technological advancements (e.g., AI for personalized
recommendations, virtual try-on apps), and competitive landscapes (e.g., fast fashion
giants, niche boutiques).
Mr Price could use the balanced Scorecard ,the customer perspective to find out the PS
challenges and needs they are experiencing in the clothing industry and then develop
ways to improve on those challenges to be more competitive in the market.
2. Define the target market and Unique Selling Proposition (USP)
MOT
IEB Copyright © 2017
This is what makes a retailer stand out. It could be exceptionally personalized customer
service, exclusive designer collaborations, a commitment to ethical and sustainable
production, or offering highly customizable garments. APP
3. Determine the marketing budget Because inefficient spending can drain resources
without yielding results. MOT
4. Implement the marketing mix to achieve the aims of the marketing strategy
A retailer could focus on innovative, functional fabrics for activewear or offer limited- APP
edition collections to create exclusivity and urgency, appealing to a fashion-forward
PS
audience. A clothing retailer could leverage a strong online presence with a user-friendly e-
commerce platform and efficient delivery, or they might focus on curated brick-and-mortar stores
in prime locations that offer a unique in-store experience.
5. Evaluate the effectiveness of the process and take corrective measures where
necessary.
MOT Because marketing is not a one-time activity; it's an iterative process. Retailers need to
17
, continuously track key performance indicators (KPIs) such as website traffic, conversion
rates, average order value, customer acquisition cost, customer lifetime value, social PS
media engagement, and sales figures.
Step 1 R
Performing an Environmental scan: The environmental scan involves looking at both the
External and Internal environments:It helps define the "playing field" and the "rules of the
game." MOT
The External analysis
Industry analysis
This is the assessment or scanning of the sector that the business operates in because we do MOT
not have any control over the macro environment.The purpose is to identify opportunities and
threats by using the PESTLE-elements.
Social ADD
The rapid pace of fashion trends, largely driven by "fast fashion," demands quick turnaround
times, efficient supply chains, and constant inventory refresh, creating pressure on retailers APP
to remain relevant.
ADD
Technology
The fast pace of technological development means continuous investment is needed to stay
competitive, making it challenging for retailers with limited R&D budgets. PS
Legal ADD
The CPA imposes strict requirements on retailers regarding clothing quality, returns, warranties,
pricing, and advertising. Non-compliance can lead to hefty fines and damage to reputation. APP
Competitor analysis
• The competitor analysis gives the business an overall picture of all the competitors in the
market. The entry of global players like Shein, Temu, and Amazon.co.za has fundamentally
reshaped the online retail landscape. Shein and Temu specifically target the ultra-fast
CUR
fashion, low-price segment, often directly competing with Mr Price's core offering.
•IEB Copyright
If we consider
© 2017
Porter's Five Forces Model, competitors may include:
1. Level of rivalry in the market. Mr Price faces stiff competition from established retailers APP
like Pepkor (e.g., Pep, Ackermans), Truworths, TFG (The Foschini Group), Woolworths,
and even international brands like H&M and Cotton On.
2. Threat of new entrants in the market. Mr Price that is facing the new competitor Uniq is APP
an example. Mr Price could use the Growth strategies to better their clothing ranges
and expand into other markets to get a competitive advantage. PS
3. Substitute products in the market (indirect competition) because it is taking away our
customers. They are normally cheaper. MOT
Market Mapping
• A market map is a visual representation of market conditions / trends.
Customer analysis
• A business needs to keep in mind the power that the buyer has (remember the
discussion of the Porter elements?)
The Internal analysis
26
Date: 13 May 2025 F2
Topic: USING MARKETING TO GAIN A COMPETITIVE ADVANTAGE AND BUILD A
STRONG BRAND F3
Compiled by: Business Consultant F4
F5
Introduction:
Intro does link
Achieving a competitive advantage in the clothing industry requires a deep understanding of
both consumer behavior and market dynamics, where a brand's marketing mix plays a pivotal
role. Brands must differentiate themselves through a combination of product innovation,
effective pricing strategies, strategic distribution, and compelling promotion, all working to
reinforce the brand.
Marketing
Marketing can be defined as the ongoing activities of the business to reach the target market
(LSM) and the methods the business utilises to connect and engage with its target market.
QP
• In order to formulate a Marketing Strategy, a five-step process has to be followed:
1. Perform an environmental scan
Because the fashion industry is highly dynamic environment. MOT
An environmental scan helps a retailer understand current trends (e.g., sustainable APP
fashion, athleisure), economic conditions affecting consumer spending (e.g., inflation
impacting luxury item purchases), technological advancements (e.g., AI for personalized
recommendations, virtual try-on apps), and competitive landscapes (e.g., fast fashion
giants, niche boutiques).
Mr Price could use the balanced Scorecard ,the customer perspective to find out the PS
challenges and needs they are experiencing in the clothing industry and then develop
ways to improve on those challenges to be more competitive in the market.
2. Define the target market and Unique Selling Proposition (USP)
MOT
IEB Copyright © 2017
This is what makes a retailer stand out. It could be exceptionally personalized customer
service, exclusive designer collaborations, a commitment to ethical and sustainable
production, or offering highly customizable garments. APP
3. Determine the marketing budget Because inefficient spending can drain resources
without yielding results. MOT
4. Implement the marketing mix to achieve the aims of the marketing strategy
A retailer could focus on innovative, functional fabrics for activewear or offer limited- APP
edition collections to create exclusivity and urgency, appealing to a fashion-forward
PS
audience. A clothing retailer could leverage a strong online presence with a user-friendly e-
commerce platform and efficient delivery, or they might focus on curated brick-and-mortar stores
in prime locations that offer a unique in-store experience.
5. Evaluate the effectiveness of the process and take corrective measures where
necessary.
MOT Because marketing is not a one-time activity; it's an iterative process. Retailers need to
17
, continuously track key performance indicators (KPIs) such as website traffic, conversion
rates, average order value, customer acquisition cost, customer lifetime value, social PS
media engagement, and sales figures.
Step 1 R
Performing an Environmental scan: The environmental scan involves looking at both the
External and Internal environments:It helps define the "playing field" and the "rules of the
game." MOT
The External analysis
Industry analysis
This is the assessment or scanning of the sector that the business operates in because we do MOT
not have any control over the macro environment.The purpose is to identify opportunities and
threats by using the PESTLE-elements.
Social ADD
The rapid pace of fashion trends, largely driven by "fast fashion," demands quick turnaround
times, efficient supply chains, and constant inventory refresh, creating pressure on retailers APP
to remain relevant.
ADD
Technology
The fast pace of technological development means continuous investment is needed to stay
competitive, making it challenging for retailers with limited R&D budgets. PS
Legal ADD
The CPA imposes strict requirements on retailers regarding clothing quality, returns, warranties,
pricing, and advertising. Non-compliance can lead to hefty fines and damage to reputation. APP
Competitor analysis
• The competitor analysis gives the business an overall picture of all the competitors in the
market. The entry of global players like Shein, Temu, and Amazon.co.za has fundamentally
reshaped the online retail landscape. Shein and Temu specifically target the ultra-fast
CUR
fashion, low-price segment, often directly competing with Mr Price's core offering.
•IEB Copyright
If we consider
© 2017
Porter's Five Forces Model, competitors may include:
1. Level of rivalry in the market. Mr Price faces stiff competition from established retailers APP
like Pepkor (e.g., Pep, Ackermans), Truworths, TFG (The Foschini Group), Woolworths,
and even international brands like H&M and Cotton On.
2. Threat of new entrants in the market. Mr Price that is facing the new competitor Uniq is APP
an example. Mr Price could use the Growth strategies to better their clothing ranges
and expand into other markets to get a competitive advantage. PS
3. Substitute products in the market (indirect competition) because it is taking away our
customers. They are normally cheaper. MOT
Market Mapping
• A market map is a visual representation of market conditions / trends.
Customer analysis
• A business needs to keep in mind the power that the buyer has (remember the
discussion of the Porter elements?)
The Internal analysis
26
