EXECUTIVE SUMMARY

As the premium highstreet sector continues to captivate the market with its latest success of ‘pulse brands’ such as the likes of Whistles and TopShop Unique; brands that bridge the gap between high end fashion and high street retail brands to create a ‘middle market’. Accessible price points and better quality items prevail as desire for luxury goods continues to grow within the retail offering optimum opportunity for innovation, as a means to stand out from

the competition.Adopting the ‘pulse brand model seems adequate for several high street retail brands following the success of ‘Zara’s’ introducing its black label of premium priced goods; a strategy that its largest rival Mango could also capitalise

on considering its current state.As a brand, Mango proves to have the resources to invest in a premium sub-brand that will allow the brand to penetrate the market further, as well as provide an opportunity to

diversify and innovate its current brand. After analysing Mango as a brand and its current positioning, a proposal was constructed with the strengths and opportunities of the brand in mind, to enable Mango to create a new identity for itself as a brand that will appeal to the characteristics of both premium and high street

consumers.

1. INTRODUCTION

The rise of pulse brands has captivated the industry, bridging the middle market with the luxury to create “brilliant, original on trend pieces with the same design credentials as their high fashion rivals.” (Britten, Gray 2014). As a new and emerging segment, there has been an increase of interest from many high street labels keen to incorporate a more premium aspect to their brands, to meet rising demand and facilitate for the noticeable change in consumer behaviour during the brink of the recession, which saw a strong desire for pricier investment,

higher quality goods and garments.

For the purpose of filling the gap in the market, the Mango brand presented a lot of opportunities to be able to incorporate a premium sub brand, and this is due to its strong logistics system which prioritises design and distribution, as well as its outsourcing approach towards manufacturing that led it to become the world’s second largest textile company. At present, the brand has attempted to enter the premium market with its ‘Mango Premium’ brand extension, however it lacks recognition within the market as it fails to differentiate from its competitors, and therefore requires a change in direction.Research was conducted using a variety of methods, utilising both primary and secondary research to further examine the brand, and this included conducting questionnaires, visiting a variety of Mango stores, as well as analysing their key competitors, distinguishing their strengths and weaknesses as a means to identify a gap that Mango could exploit. Online articles were a key source of information, as well as databases such as LSN and Mintel which gave a greater insight into the wider market. As the concept of ‘pulse brands’ remains quite new, it was therefore difficult to find specific market information on this specific segment.

2.MARKET SECTOR

2.1 MARKET SIZE AND GROWTH

PERFORMANCE

The Premium Womenswear Sector,inclusive of top end high street stores, is to grow 17% to £5.5bn from 2010 to 2015.

In 2009, premium womenswear sales were worth £4.7bn against a total womenswear market value of £19.2bn.”

2.2 KEY PLAYERS IN THE MARKET

AND THEIR PERFORMANCE

2.3 KEY PESTEL FACTORS

TechnologyTechnology is a crucial factor to the success of a pulse brand, as it demonstrated by its utilisation by the likes of Topshop Unique, and Whistles who actively use it to support its catwalk shows and campaigns. With social media being an influential part to modern society, it is therefore up to brands to try to build a personalised experience for consumers by reaching out to them on various digital platforms as “up to 35 percent of consumers indicate that they rely on recommendations from social networks”.(McKinsey On Marketing Sales, 2014)

EnvironmentalConsumers have become conscious towards all aspects of the manufacturing process of garments and goods, and there is demand for a more ethical approach with consumer perspectives for brands to provide more “ecologically unobjectionable fabrics, a conservation-minded use of resources, reduced emission of pollutants, greater social commitment, and fair treatment of employees in production facilities.” Building the right conditions to create ethical goods can be an expensive and time-consuming method to implement however, could allow a brand to differentiate from competitors within its market and allow a brand to raise prices and therefore incorporate ‘premium pricing’.

2.4 MARKET TRENDS

Defined as the modern age, educated, affluent woman, this typology group is independent and strong willed. Concerned with fitness and health to coincide with busy lifestyles, they demand the best, which translates in their consumption of luxury

goods and services.

“THE ATHENA WOMAN” (LSN GLOBAL, 2013)

2.5 IDENTIFYING THE GAP IN THE MARKET

The key gap in the market would be a sub brand that is specifically catered for the young adult, as with better lifestyle prospects for these types of consumers, there is demand for an edgy, quirky fashion brands that will stand out from competitors due to key focus on design and structure of garments and goods to appeal to the knowledgeable, expressive consumers with a lot of interest and knowledge of the industry. Key sources of inspiration could be haute couture pieces recreated, and restructured to be incorporated in day to day wear.

3.THE BRAND

Mango (Punto Fa S.L) is a Spanish fast fashion brand founded in 1984 by brothers Isak Andic and Nahman Andic who opened

their first clothing store in Barcelona. “

Mango started expanding in Europe in 1992 after

reaching 100 stores in its native Spain”, and it then went on to

expand further into international markets such as China in 2002, and the US in

2006.

3.1 MISSION STATEMENT

The successful strategy that enabled the Mango brand to expand as substantially as it did stemmed from the idea of creating “fashionable products at an affordable price, in an environment that appeals to the consumer”. With its mission statement being “to be present in all cities in the world”, the brands adoption of an “aggressive international expansion policy” has served them well as it “diversifies risk and reduces dependency on the home market.”, The brand has also adopted a franchising strategy, allowing them to fuel the expansion of the brand without taking on store ownership costs.

3.2 KPI’S

Revenue Forecast for 2017 – 3.27 Billion Euros

Revenue for 2013 – 1.85 Billion Euros

Profits – 120.5 Million Euros

Turnover Per Market Percentage

Home Market(Spain)– 17%

International Sales – 77.3%

Online Sales – 6.7%

LOW FASHIONABILITYHIGH FASHIONABILTY

HIGH PRICE

LOW PRICE

3.3 BRAND POSITIONING

3.4 CORPORATE IDENTITY

4. THE TARGET MARKET

Mango’s main target market is the working woman who is style conscious and keen to remain up to date with the latest trends and fashions. . Their consumer is sensitive to price and seeks value for money as well as good quality to formulate key staple looks for each season.

Name: ZoeAge: 24

Generation: GENERATION Y

Typologies: Athen Woman,

New Millenials, Social Singles

Income: 18,000 – 40,000 per annumLife Stage: DINKY,

HEIDISocio-Economic

Group: Lower Middle Class/

Skilled Working Class

VALS: STRIVERS, EXPERIENCERS

Motivation To Buy: Trend-Motivated, Celebrity Culture

5. THE CURRENT MARKETING MIX

5.1 PEOPLE

Mango has adopted a unified business culture that allows its employees to thrive as it utilises HR methods such as teamwork, and continuous training as means to maximise what is potentially its greatest asset. The brand has implemented a structure that allows all aspects of the workforce to give feedback on its operations as well as suggest improvements. The brand encourages internal promotion and its recent global expansion is creating new job offerings in a

wide spectrum of economies.In terms of CRM, Mango aim to reach out to their customers by encouraging customers to sign up when purchasing products through their website, as this then allows the brand to email and keep customers up to date with their latest collections

and offers.

5.2 PRODUCTCLOTHING

DressesCoats

JacketsLeather

Cardigans and sweatersBlouses and shirtsT-shirts and tops

TrousersJeansSkirts

ShortsJumpsuitsPremiumIntimates

SportEssentials

ACCESSORIESShoesBags

JewelleryLeather goods

BeltsHats and caps

Foulards and scarvesGloves

SunglassesOther accessories

5.3 PRICE

In terms of pricing strategy, Mango uses a competitive pricing method to match that of its larger key competitor Zara. In 2013, the brand cut prices by up to 20% across all its lines to mirror a similar strategy implemented by Zara, and also set out to avoid discounting and mark downs as a way of retaining profit margins.

5.4 PLACE

In terms of location, MANGO has over 2,700 stores in 107 countries, with recent store openings including Tokyo and Beijing. The brand is also attempting to take advantage of the rising consumer spending power in Africa by opening new branches in countries such as Ghana and Nigeria, as

it continues to exploit emerging economies.The brand has various forms of retailing channels in the form

of:• In store• Website• Mobile App• Online Retailers ie ASOS

5.5 PROMOTION

Mango is known for its use of celebrities to front seasonal campaigns and previous candidates have included the likes of Kate Moss, Miranda Kerr and Scarlett Johansen. It actively focuses on brand image and uses a variety of promotional methods such as TV advertising, online advertising, blogger collaborations, and events such as

the Mango Fashion Awards.

6. SWOT ANALYSIS

Strengths

• Strong management system

(day to day)• Strong brand

presence

Weaknesses

• Low market share• All apparel designed and sourced from Spain, disadvantage compared

to other competitors who can outsource for a

cheaper alternative

Opportunities

• New Technology• Emerging Markets• Diversification

Threats

• Competition from larger rival Zara

• International Competitors

7. EVALUATION OF QUESTIONNAIRE

The questionnaire demonstrated key trends within customers between the ages of 18-24, the first being that this age group purchase the bulk of their clothing items primarily on a monthly basis, however they tend to visit stores quite regularly indicating that perhaps this age group is more prone to impulse purchases, and likely to save up on a short term basis to invest in pricier goods. The key current competitors that these consumers seem to purchase from are large scale fast fashion brands such as Zara and H&M, with Topshop and ASOS following closely behind, and this suggests that the middle market is a secondary purchase source for this age group, as this is reflected on the average amount they are willing to spend on an outfit with the most popular category being ‘up to £100’. In terms of the most influential promotional activities, bloggers and online recommendations seem to be effective in encouraging purchases from these consumers, and the majority also prefer to buy key durable items if they are going to spend a larger amount on them.

I propose a sub brand targeted specifically at the 18-24 young adult segment, aiming to satisfy the truly fashion savvy consumers in the market. Instead of copying the designs of higher end designers, Mango should seek to set their own and utilise their strength in design to which currently gives them competitive advantage within the market. The brand could differentiate further by appealing to consumers who are directly influenced by celeb culture, taking on a celebrity creative director, a similar strategy to that implemented by Puma, who recently took Rihanna on, sending shockwaves across the industry. As Mango is a favourite brand amongst bloggers, an iconic brand representative with substantial status within the fashion industry would benefit the sub-brand as it would appeal

to the more knowledgeable fashion candidate.

mí by Mango

The sub brand would be compiled of key staple pieces, incorporating unique and quirky structured designs to appeal to the risk takers, with particular focus on outwear, and footwear, categories in which consumers are willing

to pay more for.

In terms of pricing the sub brand should aim to keep its price range between £100 to £500, as means to make the products accessible to STRIVER’S who desire higher quality

goods without the designer price tag.The sub brand would be placed primarily in flagship stores in big cities such as London, making it available to wider

audiences.

Promotional activities for the brand would primarily be using social media to market the collection. Events such as the Mango fashion awards would massively benefit the brand and help to translate the image of a higher end designer collection, the sub brand could use the events to

showcase their collection.

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APPENDICES