Current Industry and Market Size
Hollister Co. is a retail company that manufactures apparel and accessories for men and women. The particular style of clothing that this company provides and is known for is “surf”, “beach”; “preppy” fashion style. Hollister’s gender-labeling for their clothing are called “Bettys”, who are for women and “Dudes”, which are for men. Hollister Co.’s parent company is Abercrombie and Fitch, Abercrombie and Fitch is also known for having a “preppy” style to their fashion. Hollister was founded in 2000 and the first store was located in Easton Town Center in Columbus, Ohio (Hunter, 2007). The company also retails its products through a chain of stores in the United States, Canada, and the United Kingdom. Hollister and Abercrombie and Fitch are owned by the same person. Abercrombie and Fitch were initially designed for college students, while Hollister was lower priced for high school students (Hunter, 2007). Hollister's target market is mostly high school and college students. This company targets customers at theses age groups as well as their parents. The current industry and market size that Hollister Co. falls under is very large. There are many different clothing stores in the same industry as Hollister Co., they are the company’s main competitors. The many different well known clothing stores that fall in the industry and the competitors are the following: •
American Eagle Co.
Forever 21 Co.
Old Navy Co.
American Eagle Outfitters is one of the main competitors of Hollister Co. The reason American Eagle Outfitters is on of Hollister Co. biggest threat is because the brand’s style is similar and attracts the similar age group, which is 14-27. Both brands show off their logos on most of their products, this is one thing that usually attracts customers for this particular market group. American Eagle Outfitters prices are not as expensive as Hollister Co. but are yet still made well and not with cheap material. Growth Potential and Future Opportunities
Hollister Co. can promote customer loyalty by being nice to their customers so they would want to come back. Hollister Co. stores are designed so a customer feels like they are shopping at a beach shop. This makes customers feel like they are on vacation or living another life. Hollister Co. is usually located by stores that attract the younger crowds. Since this company attracts high school students as well as college students, there should be more discounted sales and potential savings if you spend a certain amount at each visit. This will draw in current customers as well as new customers. Hollister Co. products and advertisements attract young people that are athletic and slender fit. Their women’s pants sizes are 00-11and the shirts are size XS-L. The men’s pants are size 28x30-36x34 and the shirts sizes are XS-XL sizes. If Hollister Co. provided clothing that would fit others that were not slender fit, they would gain more new customers. Since this particular company only sells clothing up to a certain size for both women and men, they are losing potential customers that are at a heavier weight. As a woman of size, I would love to have the opportunity to buy certain clothing articles from Hollister Co., but my clothing size is not available at these stores. I am sure there are many potential customers that feel the same as I do about this particular issue. Another idea for growth potential would to let the customers have the opportunity to have a Hollister co. credit card. This would bring in more sales for the company and make the customers want to come back more frequently. Product Positioning Strategy
When a person thinks of Hollister Co, they think expensive, high-in and preppy clothing. That is what the current product positioning strategy shows; I want to change the current product positioning strategy. I want the target customer group to know that our...
References: James, K. (2009, June 12). Distribution channels for services. Retrieved from http://www.marketingmo.com/how-to-articles/distribution-strategy/distribution-channels-for-services-big-ideas-big-payoffs/
Hunter, J. (2007, August 07). Hollister co.. Retrieved from http://business.transworld.net/8642/features/how-hollister-co-stole-surf-eight-years-after-abercrombie-fitch-invaded-the-surf-market-what-can-be-done-to-defend-against-them/
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