The Strategic Importance of Department Stores Within the Fashion Industry

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Coursework submission sheet Academic Year 2013/ 2014 Programme | BA Fashion Business | Unit | Fashion Marketing 1 | Term | 1 | Teachers | Fabio Ciquera (FC), Abdullah Abo Milhim (AB), Karen Bacchus (KB), and Claudia alvarez kuzteer (CA), | Name and Surname | Tasneem Bhojwani | Student Number | FB1132017490 | Deadline of the submission | Time: Between 12:00-13:00 Date: 28TH November 2013 | Signature | Tasneem Bhojwani | ***Late submission will be penalised*** PLAGIARISM DECLARATION By sending this message I certify that I have read and that I understand the regulations of The University regarding plagiarism and unauthorized collusion. I understand that all of the assignments submitted by me in the course…show more content…
However, even though department stores are highly recognizable because of their name and history with regards to the brands they carry and their high end products, nowadays outlet stores are becoming much more popular because of their even lower pricing. Because of this low pricing, it is observable that the majority of customers are choosing these outlet stores over departmental stores, which bluntly means that the competition is becoming more and more severe. “In summary, unlike discount stores, traditional department stores tend to be challenged into finding, and creating, a winning combination of a diverse customer and merchandise mix, along with service and price expectations, rather than addressing and focusing on attracting bargain-seeking customers through niche target marketing” (Coward, 2003). In termination, the outlets’ only form of promotion is a permanent low price, whereas in department stores, there are many forms of promotion required in order to generate their profit. In fact, Price and promotion are two factors of the “4 P’s” discussed in marketing communication, which have severe effects on a customer’s outlook towards a retail environment with regards to their brand image (Kotler, 2010). Concerning price, there is the cost for the seller and for the customer (Profit +), and as for Promotion, the products benefit mainly to the customer (Eugene McCarthy). For example, you are only taking into consideration the

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