Winners and Losers

Topics: Marketing, Strategic management, Loyalty program Pages: 6 (1831 words) Published: June 22, 2013
Winners and losers
Introduction
What defines success for a brand in the marketing environment and what constitutes failure? In this essay two brands that have both been placed into the New Zealand (NZ) market place following the success of the brands in Australia will be compared. The first brand being Jeans West which has demonstrated remarkable success in the NZ market and the second being Suzanne Grae which is preparing to depart the NZ market place due to failure to create a sustainable business. Jeans West

Jeans West is a successful brand in New Zealand and this is echoed by the consumers as “Jeans West fits best”. Jeans West differentiates itself by having a wide variety of denim jeans to suit all body shapes. Jeans West also has a loyalty programme which offers discounts and invites to exclusive VIP sales. On top of that Jeans West also has a five pocket customer service programme which ensures that the customers concerns and needs and wants are met. The brand is owned by Glorious Sun and was successful first in Australia before it came to NZ. Jeans West also has stores in Asia, but in this essay the focus will be on Australia and NZ (primarily on NZ). The 2010 annual report of ‘Glorious Sun Limited’ states that the revenue that Jeans West is producing is increasing each year as shown by the graph below. (Glorisun, 2011)

Also in the annual report was the revenue by geographical location. As you can see Australia and NZ combined is the second largest quantity of the pie graph and even surpass the USA. This shows that Jeans West has been a huge success in Australasia.

(Glorisun, 2011)
Jeans West is a trusted brand that has been around for over 40 years. Their presence is online as well, as they have a fully functional website that is updated daily to promote Jeans West products and the monthly promotions. On top of that the sales assistant’s nationwide are trained to the ‘Jeans West standards’ to ensure quality service in every store. Jeans West are very strategic in regards to customer relationships and even have a ‘customer relationship and online manager’ In 2009 Jeans West re-launched their loyalty program which increased their number of registered customers by 150%. (retail biz, 2009) The point of the loyalty program was to gain information about the customer so that each customer could be marketed to according to their individual wants and needs. Customers can also register their loyalty card online to keep track of their points and to find out what discounts they qualify for. Jeans West do surveys through their loyalty customers quite often and reward them by gifting them vouchers once the surveys are completed. This has been effective in gaining valuable consumer insight and also the vouchers help get the customers into the shop to purchase even when they have not intended to. Jeans West customers are well looked after and rewarded which makes them advocates of the brand. Jeans West supports several charities.

http://www.jeanswest.com.au/backpocket-daily/ website offers styling and fashion tips.

Perceptual Map

Below is a perceptual map relative to the clothing market place. On one axis there is young target market 13+ to mature target market 35+ and on the other axis there is budget quality to excellent quality. Jeans West is mid-range to excellent quality and is pitched at the target market of 25+, however the age of their customers range from the age of 15 years to 70 years. Jeans West target market was a strategic option as consumers over the age of 25+ typically have a more stable income and make choices for ‘value for money’ rather than the cheapest option. The consumers with more income do not mind paying more for products as long as they are getting quality goods for their money. This is a priority for the 25 years+ consumers. Jeans West is a leading brand in the select target market that it is in due to the quality of the products and the success of their loyalty program....
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