Current Situation. Sacred Brand Jeans (SBJ) is a premium lifestyle brand that offers every woman the freedom to feel sexy, stylish, and edgy. We believe in the notion that every woman regardless of size deserves to dress like a diva. The SBJ collection is cut from the highest quality fabrics and tailored with perfected cuts to fit all the curves of a woman. Never before has there been an upscale premium lifestyle brand of denim that caters to such a wide variety of consumer in one market. SBJ is designed to fit not just one kind of woman, but every woman. Market research indicated that an estimated $14.6 billion dollars was spent on jeans last year and the jeans market saw a 14% increase in growth. The recent increases correlate to the influence of the premium segment, product innovation, and consumer demand. According to research women between the ages 18-35 spend more than $100 on jeans. The most intriguing research indicates that the plus-size clothing market is the most under-served market in the fashion industry. While women’s plus-size apparel market comprises nearly 30% of all women’s apparel sales, supply is still not on track to keep up with demand. Perhaps the biggest issue within the plus-size market is the lack of accurate sizes and style. With the average size of American women being between sizes 12-14, sacred brand jeans is ready to supply the demand of this ignored segment. SBJ has captured good information regarding our target markets and know a great deal about the common attributes of our most prized customers. SBJ will leverage this information to better understand who should be served, their specific needs, and how SBJ can better communicate with them. Purpose. SBJ prides itself as a lifestyle brand that appeals to women. The purpose of the business analysis is to identify strengths, opportunities, and profitability of SBJ. Marketing Mix - See Appendix A. Comparison is made with three jean companies: Sacred Brand Jeans, True Religion, and 7 Jeans for All Mankind. SBJ will leverage this information to better understand the consumers, their specific needs and how the company can better communicate with them. The marketing mix of SBJ is comparable with its competitors. The marketing mix indicates very high similarities with competitors. S.W.O.T Analysis – See Appendix B. The SWOT analysis for Sacred Brand Jeans provided information that is helpful in the strategic planning process and in matching the companies resources and capabilities to the competitive environment in which it operates. SBJ strengths will keep them in the running with the competition in the denim sector. The company has a strong relationship with the distributors and excellent staff who are well trained in measuring and sizing customers with jeans. The channels of distribution to carry the line are superior and they offer quality and stylish jeans to the plus-size market that is being ignored by the other brands. Because Sacred is a new brand, SBJ will have to build brand equity. Forecasting fashion trend is difficult but necessary if the company wants to gain profitability. The plus-size sector is one of the most under-served markets in the fashion industry. Sacred will tap into this very strong market and build a relationship with. The fashion industry is forever changing and SBJ has to be prepared for the new and current competitors who builds similar business model. Value Chain – See Appendix C. In analyzing the specific company activities, Sacred Brand Jean can create a competitive advantage. The key elements in the value chain are brought by Marketing, Sales and Services. It is through strong marketing communications, promotions mix and after sales services. The company’s products are marketed to our customers primarily through sales promotions, customer events and advertising through national television ads, print, direct mailings, as well as Internet advertising. Porter’s Five Forces – See...
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