Decreal Gear. Exemplar Response
Activity 1:
Decreal Gear is an independent sportswear company that designs and makes its own range
of sportswear products. Decreal Gear has a variety of product ranges including hoodies,
sports leggings, joggers, shorts and T-shirts. Decreal Gear are known for their excellent
reputation, high quality and stylish designs. Decreal Gear has a pricing range of between
£25-£50 which is on average nearly 45% lower than the market standard with a range of
£64-£68. Decreal Gear sell exclusively through their website and offer free delivery and
returns. Decreal Gear increase revenue through brand awareness and loyalty.
A significant opportunity for Decreal Gear is to offer loyalty cards and discounts for their
users as it is something they do not currently do. Decreal Gear have seen a trend for staying
healthy and wearing sportswear for exercise and everyday use. They also want to increase
sales with existing customers by encouraging them to interact with the social media. They
also aim to attract more new customers.
Option 2: Introduce a loyalty scheme for existing and new customers
1. Increase revenue through increased brand awareness and loyalty
With the introduction of a loyalty scheme through discounts for existing and new
customers with 50% of new and recent customers signing up and 20% using the
loyalty reward by close of the 30-week campaign.
The objective is to have 50% of new and recent customers signing up for the loyalty
card and 20% of them using the loyalty card in store or online. Achieving this
objective will support Decreal Gears aim of maintaining sales revenue through
building a loyal customer base. Loyal customers are more likely to buy if they are
satisfied with the quality of Decreal Gears sportswear.
A loyalty card is an additional incentive to spend at Decreal gear. This objective
supports the promotional element in activity 2 and use of effective marketing can
help communicate the benefits of the loyalty scheme.
2. Attract new customers through Prize Competitions
To introduce bi-monthly competitions with the prize of £100 provided to new
customers each month in Decreal Gear vouchers to be redeemed on the online store
with repeat purchase to increase by 10% within the first 15 weeks of the campaign.
The objective will support the aim of attracting new customers to Decreal gear brand
through their introduction to the website. This will engage a potentially new market
of customers within a new demographic and encouraging visits to the website
through the Prize competition may appeal to price sensitive customers initially.
,Decreal Gear. Exemplar Response
Customers who win the prize competition will also spread that awareness of the
Decreal Gear brand to their network.
Specifically, the use of social medias Facebook and Instagram for promotion as these
platforms have a demographic like Decreal Gear customers. If prize winners are to
apply to win, they will have to post a picture of them during a gym or at home
workout and tag Decreal Gear, selection will be chosen based on most creative and
exciting post.
Primary Research:
Primary research suggests factors like quality and fashion are the top two in what
the recipients prioritise when purchasing sportswear. This is supportive of Decreal
Gears USP as they are known for providing high quality and fashionable sportswear.
The majority of consumers were willing to pay £100- £250 a year for their
sportswear, this is an opportunity for Decreal Gear to consider their current pricing
strategy as they are offering a lower price point for products than competitors.
Discounts and Loyalty schemes were considered the top factors in enhancing their
relationship with a brand.
Secondary Research:
There is little in the research to suggest that demand for sportswear will fall, and
Decreals target customers (25-35 aged fitness enthusiasts) are likely to continue to
spend on new garments as they do their favourite fitness activities. However, the
strong size and growth of the market might also encourage more new entrants into
the market targeting Decreals customers. The UK sportswear market is already
worth £6.7bn and is growing by around 3-4% per year. Growth is supported by
increasing numbers of people wanting to buy sportswear for exercise and for general
leisure use.
The main limitations on the reliability of the primary research are the small sample
size and the timing and location of the sample. A sample size of 100 is unlikely to be
statistically representative of the overall population of target customers for Decreal.
Similarly, the data was only obtained in one city center location on one day. It would
also have been useful for the questionnaires to ask whether respondents had heard
of Decreal gear to measure brand awareness compared with competitors.
However, in other respects, the primary research is appropriate and useful. For
example, it provides useful confirmation of the secondary research about the
importance of brand awareness and loyalty in the sportswear market. It also
highlights how important target customers consider discounts and loyalty schemes
are when buying from a brand, as well as the potential effectiveness of training
videos to help promote the Decreal brand and showcase its garments.
Target Audience:
Sportswear is popular for individuals interested in exercise however there is interest
from a broad range of customers who are wearing sportswear for exercise and
leisure. The customer base covers across a wide range of ages.
, Decreal Gear. Exemplar Response
Trends:
The market is large and is growing year on year with 21% growth between 2018-
2023. Yoga wear is a current trend which is dominating the market, occupying
between 36%-45%. The key themes from the secondary research for Decreal Gear
and how they affect our proposed marketing campaign are summarised below.
Retail distribution in the UK sportswear market is dominated by the likes of Sports
Direct and JD Sports who sell their own brands and those of the major sportswear
brands such as Nike and Adidas. However, 55% of people in the UK now also buy
sportswear online and this looks set to grow.
The growth of online sales is good news for Decreal because that is currently their
only distribution channel. This supports the use of social media content and online
advertising as a key part of the marketing campaign, particularly that targeted at the
25-35 age demographic of fitness enthusiasts. However, Decreal is likely to face
strong competition in online promotion, including from bigger brands and new
entrants.
COMPETITORS:
The industry is dominated by market leaders such as Sports Direct, JD Sports. Global
brands such as Nike and Adidas are market leaders with large brand awareness
however smaller more niche and sustainable brands are emerging. Market leaders
have strengths in their diverse distribution and loyal customer base.
STRENGTHS
In the highly competitive sportswear market, Decreals reputation for excellent
quality and stylish design is important if the business is to remain competitive
against much larger brands. Decreal will need to continue offering high quality and
design to help differentiate its products and, therefore, enable promotional activity
to engage effectively with the target audience of young fitness enthusiasts. The
effectiveness of the proposed social media content in our marketing campaign will
be higher and more cost effective is this strength is maintained.
WEAKNESS:
Sales at Decreal have not grown over the past three years, however the UK
sportswear market is forecast to have grown by 21% between 2018 and 2023. This
suggests that Decreal has a competitive weakness because it has lost market share in
the last three years, perhaps because Decreals marketing messages have not evolved
to take account of changing trends in the market such as increasing home exercise. It
may also be that Decreal customers have become less loyal. It is important that
Decreal address this weakness, for example by using the proposed social media
content campaign to gain new and better insights from Decreal customers about
their needs and wants, which can then be fed into sportswear product development.
OPPORTUNITY:
Activity 1:
Decreal Gear is an independent sportswear company that designs and makes its own range
of sportswear products. Decreal Gear has a variety of product ranges including hoodies,
sports leggings, joggers, shorts and T-shirts. Decreal Gear are known for their excellent
reputation, high quality and stylish designs. Decreal Gear has a pricing range of between
£25-£50 which is on average nearly 45% lower than the market standard with a range of
£64-£68. Decreal Gear sell exclusively through their website and offer free delivery and
returns. Decreal Gear increase revenue through brand awareness and loyalty.
A significant opportunity for Decreal Gear is to offer loyalty cards and discounts for their
users as it is something they do not currently do. Decreal Gear have seen a trend for staying
healthy and wearing sportswear for exercise and everyday use. They also want to increase
sales with existing customers by encouraging them to interact with the social media. They
also aim to attract more new customers.
Option 2: Introduce a loyalty scheme for existing and new customers
1. Increase revenue through increased brand awareness and loyalty
With the introduction of a loyalty scheme through discounts for existing and new
customers with 50% of new and recent customers signing up and 20% using the
loyalty reward by close of the 30-week campaign.
The objective is to have 50% of new and recent customers signing up for the loyalty
card and 20% of them using the loyalty card in store or online. Achieving this
objective will support Decreal Gears aim of maintaining sales revenue through
building a loyal customer base. Loyal customers are more likely to buy if they are
satisfied with the quality of Decreal Gears sportswear.
A loyalty card is an additional incentive to spend at Decreal gear. This objective
supports the promotional element in activity 2 and use of effective marketing can
help communicate the benefits of the loyalty scheme.
2. Attract new customers through Prize Competitions
To introduce bi-monthly competitions with the prize of £100 provided to new
customers each month in Decreal Gear vouchers to be redeemed on the online store
with repeat purchase to increase by 10% within the first 15 weeks of the campaign.
The objective will support the aim of attracting new customers to Decreal gear brand
through their introduction to the website. This will engage a potentially new market
of customers within a new demographic and encouraging visits to the website
through the Prize competition may appeal to price sensitive customers initially.
,Decreal Gear. Exemplar Response
Customers who win the prize competition will also spread that awareness of the
Decreal Gear brand to their network.
Specifically, the use of social medias Facebook and Instagram for promotion as these
platforms have a demographic like Decreal Gear customers. If prize winners are to
apply to win, they will have to post a picture of them during a gym or at home
workout and tag Decreal Gear, selection will be chosen based on most creative and
exciting post.
Primary Research:
Primary research suggests factors like quality and fashion are the top two in what
the recipients prioritise when purchasing sportswear. This is supportive of Decreal
Gears USP as they are known for providing high quality and fashionable sportswear.
The majority of consumers were willing to pay £100- £250 a year for their
sportswear, this is an opportunity for Decreal Gear to consider their current pricing
strategy as they are offering a lower price point for products than competitors.
Discounts and Loyalty schemes were considered the top factors in enhancing their
relationship with a brand.
Secondary Research:
There is little in the research to suggest that demand for sportswear will fall, and
Decreals target customers (25-35 aged fitness enthusiasts) are likely to continue to
spend on new garments as they do their favourite fitness activities. However, the
strong size and growth of the market might also encourage more new entrants into
the market targeting Decreals customers. The UK sportswear market is already
worth £6.7bn and is growing by around 3-4% per year. Growth is supported by
increasing numbers of people wanting to buy sportswear for exercise and for general
leisure use.
The main limitations on the reliability of the primary research are the small sample
size and the timing and location of the sample. A sample size of 100 is unlikely to be
statistically representative of the overall population of target customers for Decreal.
Similarly, the data was only obtained in one city center location on one day. It would
also have been useful for the questionnaires to ask whether respondents had heard
of Decreal gear to measure brand awareness compared with competitors.
However, in other respects, the primary research is appropriate and useful. For
example, it provides useful confirmation of the secondary research about the
importance of brand awareness and loyalty in the sportswear market. It also
highlights how important target customers consider discounts and loyalty schemes
are when buying from a brand, as well as the potential effectiveness of training
videos to help promote the Decreal brand and showcase its garments.
Target Audience:
Sportswear is popular for individuals interested in exercise however there is interest
from a broad range of customers who are wearing sportswear for exercise and
leisure. The customer base covers across a wide range of ages.
, Decreal Gear. Exemplar Response
Trends:
The market is large and is growing year on year with 21% growth between 2018-
2023. Yoga wear is a current trend which is dominating the market, occupying
between 36%-45%. The key themes from the secondary research for Decreal Gear
and how they affect our proposed marketing campaign are summarised below.
Retail distribution in the UK sportswear market is dominated by the likes of Sports
Direct and JD Sports who sell their own brands and those of the major sportswear
brands such as Nike and Adidas. However, 55% of people in the UK now also buy
sportswear online and this looks set to grow.
The growth of online sales is good news for Decreal because that is currently their
only distribution channel. This supports the use of social media content and online
advertising as a key part of the marketing campaign, particularly that targeted at the
25-35 age demographic of fitness enthusiasts. However, Decreal is likely to face
strong competition in online promotion, including from bigger brands and new
entrants.
COMPETITORS:
The industry is dominated by market leaders such as Sports Direct, JD Sports. Global
brands such as Nike and Adidas are market leaders with large brand awareness
however smaller more niche and sustainable brands are emerging. Market leaders
have strengths in their diverse distribution and loyal customer base.
STRENGTHS
In the highly competitive sportswear market, Decreals reputation for excellent
quality and stylish design is important if the business is to remain competitive
against much larger brands. Decreal will need to continue offering high quality and
design to help differentiate its products and, therefore, enable promotional activity
to engage effectively with the target audience of young fitness enthusiasts. The
effectiveness of the proposed social media content in our marketing campaign will
be higher and more cost effective is this strength is maintained.
WEAKNESS:
Sales at Decreal have not grown over the past three years, however the UK
sportswear market is forecast to have grown by 21% between 2018 and 2023. This
suggests that Decreal has a competitive weakness because it has lost market share in
the last three years, perhaps because Decreals marketing messages have not evolved
to take account of changing trends in the market such as increasing home exercise. It
may also be that Decreal customers have become less loyal. It is important that
Decreal address this weakness, for example by using the proposed social media
content campaign to gain new and better insights from Decreal customers about
their needs and wants, which can then be fed into sportswear product development.
OPPORTUNITY:
