Market Analysis- Competition and Consumer: Clothing Stores

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Introduction2
Part A – Competitive Analysis2
NAICS Coding System2
Top Five Companies in Canada3
Reitmans Canada Limited – Hoover’s Report5
Products and Product Lines5
Part B – Customer Segmentation6
Segment #1 - Newly Entering Women in Business (NEWBS)6
Demographic/Geographic:6
Psychographic:6
Behavioural:6
Segment #2 - Empowered Former Fatties7
Demographic/Geographic:7
Psychographic:7
Behavioural:8
Segment #3 - Hopeless Husbands8
Demographic/Geographic:8
Psychographic:9
Behavioural:9
Appendices10
Appendix A - Top Clothing Companies by the Financial Post10 Appendix B - Hoover’s Report11
Bibliography17

Introduction

Essential to the survival of businesses in any industry is to satisfy the needs and wants of consumers, which can be difficult since these differ so greatly from person to person. Furthermore, with increasing competition, companies not only need to know their customers, but their competitors as well. Marketers use segmentation of markets as an effective tool to help companies understand how their particular product can effectively satisfy the needs and wants of targeted consumers, giving them a competitive advantage. Companies also consider conducting research regarding competitors and the use of classification systems can be an effective secondary research tool. This report explores the competitive environment surrounding the clothing retail industry and analyzes possible consumer segments for a leading retailer in this industry, Reitmans. Part A – Competitive Analysis

NAICS Coding System

For the purpose of proper research on the clothing industry, the North American Industry Coding Standards (NAICS) has outlined industry specifics and statistics. Developed by Canada, Mexico, and the United States, NAICS is an industry classification system that uses a hierarchy of codes to distinguish industries into sectors based on economic activity (Statistics Canada 2006).

The clothing store industry is classified under NAICS as 448. The number 448 refers to retailers of clothing and clothing accessories. It is important to note that the classification mostly refers to United States based companies; however, the 448 coding is further broken down into smaller sections including an exclusive Canadian sector, 448199 (Statistics Canada 2006). The 19 part of the code refers to other clothing types, and the last number, 9, is the specific code for Canadian clothing stores (Statistics Canada 2006). The 448 NAICS coding includes 44811 (menswear), 44812 (women's wear), 44813 (children and infant stores), 44814 (family clothing stores), 44815 (clothing accessories), 4482 (shoes stores), and 4483 (jewelry, luggage, and leather goods stores) (Statistics Canada 2006). This coding and classification system can be a useful tool for companies to asses their competition. Top Five Companies in Canada

Competition is fierce in this particular industry, so we turned to the Financial Post research database to help us determine who the top five players were. Based on revenue, the top five clothing stores in Canada are Reitmans Canada Limited, La Senza Corporation, Le Château Inc., Danier Leather Inc., and West 49 Inc (CanWest 2006b) 1.Reitmans Canada Limited had the highest sales of all the retail apparel companies in Canada (See Appendix A). The company operates under six different names, each of which targeting different market segments, from plus sized women to expecting mothers. This offering captures a large percentage of the market, allowing the company to generate sales from a number of different sources. Reitmans does not rely on a particular product or market segment to make a profit because it targets such a large consumer base. The company has been in business for 80 years and has developed brand loyalty and recognition from many different consumer groups. 2.La Senza Corporation is also among the top five industry players. Its reputation for quality, affordability, and...
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