Reiss Three Year Marketing Plan

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Created in 1979 by David Reiss, Reiss is has developed into a powerful brand offering stylish clothes at affordable prices. 2006 proved to be a successful year for the organization, where it achieved £6.8 million in operating profit and sales of £44.5 million. Currently, it has 39 stores worldwide and is expanding rapidly. The following 3 year strategic marketing plan will demonstrate the steps Reiss need to take in order to become a dominant force in the UK and a strong international brand.

Keys to success:

E-business development
International expansion
Domestic market growth
Product development
Brand awareness
Organization flexibility




oIn order to tackle interest rates, The Bank of England has increased interest rates to 5.25%, which will subsequently decrease consumer expenditure. oThe recent rise of inflation to 3% has made it more expensive and left less disposable income for consumers. oThe key Consumer Price Index to a decade high of 2.7%.

oAlthough, unemployment decreased by 7,000 from August to October, leaving it to 5.5% in the UK oGeneral consumer expenditure (GMID 2006) has increased to £742,977,000,000, which can be demonstrated in figure 1.


oThe UK populations is ageing
oThe birth rate is declining.



There is still a strong interest in fashion.
UK spending on clothing has increased, which can be demonstrated in figure 2. •Demand is doing well, but the industry is expected to fluctuate due increasing costs in borrowing. 2006 is projected to be a tougher year. •Although costs are increasing, prices of clothing are decreasing due to a very competitive market.


Although lowers price have increased demand, consumers are not mainly influenced by price when making sales. Fashion is one of the main elements. •Celebrities and fashion media are still a huge influence in the market. •Sales of fashion accessories have increased by 40% from 2000 to 2005 (Mintel – Fashion Accessories Retailing – 2006).


Demand is expected to decrease in 2007
Erratic weather and fashion trends make it more difficult for retailers. •Price Deflation.
Catwalk trends have become less influential than previously, due to the erratic market.


The Bargaining Power of Customers

Buyer power is high due to substitutes.
Buyer price sensitivity is high.
Buyer volume has risen.
Buyer information availability has increased.
Switching costs are low.

The Bargaining Power of Suppliers

Bargaining Power is low.
High presence of substitute inputs.
Supplier switching costs low.

The Threat of New Entrants

Barriers to entry low.
Switching costs low.
Access to Distribution easy.
Government policy liberal.
Brand identity strong.

The Threat of Substitute Products
Buyer switching costs low.
Level of product differentiation high.
Brand loyalty decreasing.
Price elasticity increasing.

The Intensity of Competitive Rivalry.
Competition high
Industry growing.
Middle market being squeezed.
High diversity
Brand equity high.



In 2006, the fashion market has become very competitive and consumers have become more demanding of price, quality, and styling (Mintel – Clothing Retailing 2006). •Customers are a lot more fashion conscious now and confident with what they wear. •Retail Branding is becoming increasingly popular.

Per Capita consumer expenditure has increased to £12,424, which can be demonstrated in figure 3.


E-commerce is gaining ground and customers are keener with buying clothes online. •The menswear trend is moving away from formalwear and going towards more of a casual look. •Older women, which partially fall into Reiss’s target...
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