Marketing Mix

"The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market." (Kotler, Armstrong, 2010).

 

 

 

The picture above shows the 7 P's that are considered within the marketing mix.

 

In this blog I will look at Topshop's marketing mix by looking at some of the 7 P's including Product, Price, Promotion, Place and People.

 

 

Product

A product mix is “the composite group of products that a company makes available to customers” (Dib et al,2016).
The picture above shows the wide product mix that Topshop offers, including different clothing ranges, shoes, underwear and beauty products. One of Topshop’s marketing objectives are to design and cater to different markets, for example, in their clothing range they have a line called unique which is more expensive and is similar to designer clothing which can be aimed at a particular market of higher class. They also have a basics range which is more affordable. This price range shows that Topshop makes it accessible for different markets that they target- pre-teens, teens, young adults and adults. They also target markets with different ranges of size making it accessible to people of all sizes. Topshop have four different size ranges- Tall, Petite, Maternity and Mini. This also allows them to stand out from their competitors, such as Zara, that don’t cater for different sizes.

During the 2013 London fashion week, the Unique Spring/Summer collection was showcased and live customisation was set up for customers allowing them to change the colour of the pieces on the catwalk. This allowed Topshop to see what colours and shapes their customers desired, influencing them to decide to stock this in their shops. This was a different approach Topshop used, by using technology to undertake their market research.

Topshop take a market orientated approach which means they focus on their customers’ needs through their product mix instead of the business doing what they think is best. This shows how much Topshop value their customers which could build up brand loyalty and could help Topshop gain more customers.

Topshop make many extension strategies as part of the product life cycle to make sure their products don’t hit the decline stage and get withdrawn from the market.
One of the extension strategies that they use is price reduction. This allows Topshop to try and get rid of their older products before the new stock comes in. They achieve this by having end of season sales and reducing the price of their products, which can be effective as they do not do this often so customers will be drawn into the store more easily.

Secondly, they use promotion as Topshop changes their items every two weeks. This then results in them having to sell their left-over stock which they do by having a ‘last chance to buy’ section in store instead of reducing their prices. This is a tactic they use, as even although they don’t have sales every two weeks this still attracts customers to look at the stock that is about to be withdrawn from the shop.

The last extension strategy that Topshop use is repackaging. This is only really used for make-up or accessories, for example nail polish. For the nail polish to sell more quickly, Topshop combine nail polishes together in small sets with colours that complement each other.

This is Topshop’s Boston matrix. This is used to show the business what products are doing well in the market and the products that may be in trouble. There are two variables- market share and market growth.

A Boston matrix is made up and products are put into four different categories-

Stars- High market share and high market growth

Problem Children- Low market share but high market growth

Cash Cows- High market share but operate in low growth markets

Dogs- low market share and low market growth meaning the product is not doing well in the market so therefore could be withdrawn

Topshop’s Boston matrix shows that high-waisted jeans are doing well in the market as they have a high market share and a high market growth. On the other hand, umbrellas have a low market share and a low market growth and therefore could be withdrawn from the market unless an extension strategy is put in place.

Topshop now sell many well-known brands for example, Ivy Park co-founded by Beyoncé, Adidas, Calvin Klein, New Era and many more. This widens the product range that Topshop sells and also increases its market share by targeting many more markets (Topshop,2016).

Price

Pricing is a very important factor that a business needs to consider. It can be really hard for a business to set a price on their product, that will try and help them stand out from their competitors, allow them to gain sales, make profit and many other factors . Many pricing strategies can be used when setting a price- some of which are shown in the chart below.

Topshop use many pricing strategies for their products. Penetration pricing is used on basic skater dresses as they are set low to gain market share and to target a new market. Skimming pricing is used for skater dresses with a bit more detail which are set at higher prices as Topshop know that their customers will buy them. This also shows that they are good quality if they are set at a higher price. Premium pricing is used on the Unique collection as they are a lot more expensive as they are designer.

Topshop also have many pricing promotions throughout the year. Students get a 10% discount all year long, which can form brand loyalty with the customers and help attract younger markets which a lot of their clothing is aimed at. They also do special events, where they provide discounts for a certain period of time, helping to attract customers. Other promotions that they have is ‘lips 2 for £12’ and at Christmas time they have stocking fillers for under £15 (Topshop,2016).


Place

In 1942 Topshop started off in the basement of a Sheffield department store and now has 440 stores, with 300 in the UK and over 100 countries worldwide. Topshop now has stores in France, Germany, Australia, United States, New York City, Las Vegas and many more. This expansion helps to create brand awareness and increases Topshop’s market share as many more people are aware of the business, and Topshop can target their products to different geographical segments and cultures. “They ship their products to over 100 countries around the world allowing them to reach customers who would not usually be able to buy their products” (Topshop, 2013).

Topshop now offer their products in well-known department stores such as Nordstrom and take a hybrid approach by selling their products in both Topshop and department stores which is an advantage for Topshop as it saves them having to build their own stores but allows them to target more customers.

In 2012, Topshop partnered up with Cape Town-based boutique Unknown Union and opened a pop up store in Cape town, South Africa. Topshop selected the best pieces from Topshop’s collections to have on sale as they were unable to ship everything over. This resulted in a lot of media coverage as it was the first time the British fashion chain opened a pop-up shop in South Africa. The director of Unknown Union, said, “They have a history of doing pop-ups in markets that they are interested in opening stores in, but I think [this] is largely a promotional effort on their part,” (Sean Shuter,2012)

This is a picture of Topshop’s pop up store in Cape town.

Topshop also used advertisement, as seen above, to increase awareness of the event and to build brand awareness within this new country.

Topshop also opened a pop-up shop in Toronto, as shown above, which again helps to increase the brand and increase market share within a different country.

Topshop also uses social media, for example Facebook, where they advertise their products and post the latest fashion and trends for their customers. It also notifies customers when their events are taking place and offers and promotions that are on. Topshop also have many more social media pages such as, Twitter, Instagram, Youtube, Snapchat, Pinterest and many more. This is successful as social media is popular with the younger generation.

A link to Topshop's Facebook page is given below-

https://www.facebook.com/Topshop

Topshop's website is also set up like a blog as it has a section where customers can upload pictures of them wearing Topshop clothing. Using social media and a blog allows Topshop to interact with the customers and to gain feedback on what they like and dislike about the collections.

The design of Topshop's website is very sophisticated and luxurious compared to Miss Selfridges and is set out very clear and is easy to follow. It is set out in clear headings and also has an 'About us' section where you can read about the background of the business which you wouldn't find in store. On the website you can also track your order, by seeing where it is and when it is going to arrive (Topshop,2016). These features makes
it easier for customers to shop online, which is why it has become increasingly popular nowadays.

A link to Topshop's website is given below-

www.topshop.com/

Topshop now has its very own app that you can access on the go from any android tablet. This allows customers to shop no matter where they are. The app also has a wish list that you can add items that you want and also allows you to scan a barcode off of a product from Topshop that will then appear on the app where you can read reviews on it or if they don’t have your size you can see which store has it in stock.

Topshop's designer collections are also shown at London fashion week, where customers can see what is happening through social media and their website and see the different products on the run way. This also helps Topshop advertise their clothing, and gives them a good luxurious image as their collections are seen on well-known models. This is also increases the awareness of the business, due to the publicity that a large event like this gets.

Topshop also use celebrity endorsement by launching the Kate Moss collection which is modelled by Kate herself. Celebrity endorsement can be an advantage as customers will think the product is good if it is seen on a celebrity and therefore will want to buy it. Jin and Phua, (2014) defines a celebrity endorser as “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement”. Using celebrities can also enhance the brand equity of the business but on the other hand can tarnish it if the celebrity acts inappropriately.

The picture above shows the Kate Moss collection on the Topshop website.


Promotion

Promotion is used to create awareness of a brand or a particular product/service and also helps to create brand loyalty. There are many objectives that the business will have when using promotion for example, to create brand awareness which is most important to the business as they want their business to expand so the use of advertisements will allow them to achieve this as it can reach a large group of people, depending on where the advert is placed. Proving information is also important, as an advert might be informing the audience of a new product or service that the business is introducing, so the customers need to know all about it. There are several methods of promotion that a business can use-

·         Advertising

·         Sponsorship and Public relations

·         Personal selling

·         Direct promotions

·         Sales promotions

In 2011, Topshop delegated all their PR and events to Zapwater Communications for the opening of the new store in Chicago. This included marketing, social media, street marketing the set up of many events beforehand and many more (PR Week,2011).


The link below is a video on Youtube which talks about this campaign-
  
https://www.youtube.com/watch?v=N8hk9FNfL2g  

Topshop also have a magazine which you can read on their website which is updated weekly with fashion stories and campaign shoots.
  

Above is a picture of one of Topshop's magazines where they also promote their products.

In 2015, Topshop released an advertising campaign which featured the model, Gigi Hadid. This advert showed many of Topshop's collections which were seen on Gigi, which again would be successful through celebrity endorsement. It also allowed them to increase their brand awareness. Below is a link to Youtube, which shows this advert.

https://www.youtube.com/watch?v=KLuba864LWI 

Before the opening of the new store in New York in 2010 a van was decorated to reach new customers and to advertise the opening of the new store. Flyers, gift cards and freebies were also given out. This creates brand awareness to existing customers and to new ones through these events, press coverage, advertisements and many other public relations (WordPress, 2010).

The picture aboves shows the van that Topshop decorated to advertise the debut of the new store.

Another marketing strategy Topshop came up with was a "How to cycle in style" campaign where 30 shoppers were sent on a scavenger hunt around the city and store. Photographs were also taken and posted on social media sites such as Facebook, which allowed them to promote this event worldwide. The shoppers were also wearing Topshop products which advertised some of their collections to the public. The picture below shows one of the shoppers cycling around the city (WordPress, 2010).

This campaign didn't just promote the new store and the brand but it also contributed to the green movement which was happening at the time, which shows that Topshop are socially responsible. 

Topshop support many charities which helps to promote the brand as well as giving the business a good image. One of the charities that they sponsor is Breast Cancer UK as they bring out a newly designed t-shirt each year and donate the proceeds to the charity (Topshop,2016).

The picture above is the 2015 t-shirt that was designed for Breast Cancer UK.

They also support Teenage cancer trust by holding Summer Bandstand picnics to raise money. They also sponsor several other charities including- Age UK, Help the age and Age concern. The girls from Topshop's HQ also took part in a sponsored charity sleep-out for Centrepoint and friendship bracelets were designed and sold for £1 at tills in store (Topshop,2016).
 
People

Topshop offer a personal shopping service, where you can book an appointment for one-to-one advice within a designer suite. This is only available in selected stores, so there is a quiz you can complete on the Topshop website that asks you several questions from what celebrity styles you like to how adventurous your style is. This then calculates which of Topshop’s pieces are best for you. This improves the customers experience within Topshop and would make the customer feel special so therefore would create customer loyalty. There are several appointments that you can choose from, depending on the event you are attending or the type of style you are looking for (Topshop,2016).

‘View your wardrobe’ is also available within the website which keeps your latest items and also gives you regular recommendations on items that you may like and allows you to inform them on the collections that you like so they can keep your wardrobe up-to-date.

The link below shows you the variety of appointments that Topshop offer within their personal shopping experience-

http://www.topshop.com/en/tsuk/category/topshop-personal-shopping-4886705/home?TS=1444832379447&intcmpid=W_FOOTER_PERSONAL_SHOPPING

Topshop also uses a reward scheme with the Topshop card that provides the customers with many offers and discounts. Some rewards that Topshop offer are free standard delivery twice a year, rewarded with a birthday treat, a £5 off Topshop voucher to use on a £50+ spend and many more. This encourages customers to purchase items at Topshop so that they can receive their awards. This again will also result in customer loyalty and will give the business a good reputation, by the word of mouth. Topshop, make it easy to apply for this card as it can be set up on their website and you can also easily check your balance or make payments on their website as well.  

Topshop also offer a ‘Buy now pay later’ scheme which gives you 3 months to pay for your Topshop purchases. This gives the customer some freedom and control as they can pay for their items anytime within the 3-month period (Topshop,2016). This also shows that Topshop trust and care for their customers which will give them a positive image and a good reputation within the market.