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Contemporary Advertising
MKT 6014
Gregory Noel-Butterworth – S12794493
Word Count: 1645 (Minus Tables)
Table of Contents
SITUATIONAL ANALYSIS 1-4
OBJECTIVES 5-6
CUSTOMER PROFILE 6-8
PRODUCT CONSIDERATIONS 8-9
MESSAGE STRUCTURE 9-10
MEDIA STRATEGY 11-13
ADVERTISING OBJECTIVE AND MANDATES 13
INTEGRATED MARKETING COMMUNICATIONS 14-15
APPENDIX 1.0 – 1.2 CAMPAIGN EXAMPLES 16-19
APPENDIX 2.0-2.1 SITUATIONAL ANALYSIS 20-23
APPENDIX 3 PRODUCT LIFE CYCLE 24
APPENDIX 4 BOSTON MATRIX 25
APPENDIX 5 DAGMAR 26
APPENDIX 6 CUSTOMER ANALYSIS 27-28
APPENDIX 7 PROPOSED MARKET POSITION 29
REFERENCES 30-35
1
Background
Founded in 1972, French Connection (FC) was built on the value of innovative
clothing that appealed to a broad range of consumers (FrenchConnection,
2015), however, the company now finds itself in a decade long stage of
restructuring in order to return to meaningful profits (Barmby, 2014).
Known for their individualistic approach to fashion, the company’s 1997 FCUK
branding campaign put FC at the forefront of the publics mind and led to a
significant increase in sales (Barmby, 2014). During this period the brands
acronym was received well by forward thinking 18-35 year olds who
embraced the slogans shock value as it was seen as a way to communicate
‘anti-establishment’ ideals (traits common at the time) (Barnes, 2004). Yet, the
success of the FCUK brand was short lived, highlighted by a 2004 Draper’s
Report that found consumers saw FCUK as ‘tired/tacky’ (Barnes, 2004).
The impact of FC’s use of shock/sex in its advertisements (to differentiate)
started to wane as consumers found adverts ‘boring/over-replicated’
(appendix 1.0) (Barmby, 2014). Consistent failure with advertising led to a
60% drop in profits (Barnes, 2004). Furthermore, the ‘anti-establishment’
target market had grown up (Payne, 2004) and become disillusioned with
FC’s aesthetic definition (Ruddick, 2013). For example, FC was associated
with pretty dresses/smart shirts, yet FCUK were still attempting to break
fashion rules (Gonsalves, 2012).
Gregory Noel-Butterworth S12794493
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FC’s 2013 ‘risqué’ sketch campaign (appendix 1.1) attempted to remind
consumers of the fearless attitude that made the FC brand desirable,
however, the campaign led to an 8% reduction in UK sales (Ruddick, 2013).
The use of celebrity endorsements in advertisements (appendix 1.2) from
Zara/Topshop were preferred and led to these competitors gaining market
share on FC (Ruddick, 2013)
Consistently poor advertising, on top of the confusion between FC and its
FCUK brand has put the company in a poor UK position, evidenced by the
fact that FC are attempting to close 15 UK stores (Ruddick, 2013).
(Appendix 2 and 2.1 offer an in-depth snapshot into FC’s current position)
Product Life Cycle
Appendix 3 shows that FC’s UK products are in the maturity stage suggesting
that FC operate in a highly saturated market (Arens et al, 2008). The continual
erosion of FC’s profits (Ruddick, 2013) is down to the fact that their products
have plateaued for over 4 years, meaning that consumers no longer perceive
an advantage when using the products (Lee & Carter, 2012), which has led to
consumers buying cheaper alternatives (Zara/Topshop) (Gonsalves, 2012).
Strategic Considerations
To arrest this continual erosion of profits, you must design a campaign that
rebrands the FCUK brand to a new generation by giving it a newfound
identity. The campaign must educate customers of the purpose behind the
brand to ensure FC achieves a healthier product life cycle to ensure long-term
3
strategic success. Initially, this should be done through increased targeting
(UK Gen Z consumers) through direct marketing.
Boston Matrix
Comparison of FC’s Boston Matrix with its competitors (appendix 4) shows
that the company’s product portfolio is unhealthy. The majority of products are
in the ‘Dogs’ section, meaning that these products are contributing to FC’s
financial losses (Lee & Carter, 2012).
Strategic Implications
Your campaign should focus on revitalizing/rebranding the ‘Dogs with the
highest market share (Menswear/Outerwear) through an exciting FCUK
branding strategy that gives consumers an understanding of what the new
FCUK stands for. A new clothing range specifically targeted to Gen Z
consumers should be developed.
Brand Perception
 A perceptual gap exists between the brand and the products. The
product offers styles cut for a youthful audience with a level of quality
that doesn’t match up to the promise of the brands communications.
 Neither seen as low-price, or high-fashion. Seen as ‘middle-of-the-road’
with no real consumer value.
(Benjamin, 2012)
Gregory Noel-Butterworth S12794493
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Strategic Implications
Your campaign should give FC a clear position by bringing more excitement,
cultural relevance, theatre and desire (Benjamin, 2012).
The newfound positioning must differentiate the brand by identity and focus
on special attributes that match up to the aspirations of our consumers (see
‘Gen Z psychographics’).
Key Insights into the Apparel & Non-Apparel Manufacturing Market (UK)
 FC’s Market share fell from 1.6% (2010) to 1.4% (2014) (MarketLine,
2014).
 The market declined in 2013, yet has a predicted compound annual
growth rate of 3.1% (over next 5 years), driving total market value to
£15.79bn (MarketLine, 2014). Yet the ‘Youth Male Fashionwear’
segment grew 31.1% over the last 5 years (Keynote, 2014).
 FC operate in a highly competitive, fragmented and saturated market
(MarketLine, 2014) and are losing ground in the upper/middle market
(Ruddick, 2013) as cheaper alternatives (Zara/Topshop) continue to
eat into FC’s market share (Gonsalves, 2012).
 Over the next 5 years, high growth expected in ‘youth male
fashionwear’ (defined as 13-24 y/o) segment (Keynote, 2014)
Strategic Implications
Your campaign should increase consumer demand to regain lost market
share and take advantage of the markets’ forecasted 16.1% value increase
5
(2018) (MarketLine, 2014). Focusing your campaign on Gen Z males will give
you the best chance of achieving this.
Conclusion
Although in an unfavourable position, FC are a sleeping giant and are one
campaign away from becoming the force they once were (Barmby, 2014).
Your campaign must give consumers an emotional connection with the new
FCUK brand to create valued brand characteristics. Clear positioning of the
FCUK brand will improve the health of FC’s product portfolio, which will then
place FC in a good position to take advantage of the forecasted market
growth.
Objectives
Corporate
 To return FC to a UK profit of at least £10m by 31st Dec 2017.
 To create a distinctive position for the FCUK brand amongst Gen Z
consumers by modifying the brands identity to one that works to make
the world a better place (see psychographics) by 1st April 2016.
(Measured using focus groups)
Marketing
 To increase market share to 2% of the total UK ‘Apparel and non-
apparel manufacturing market’ by 31st Dec 2017.
 To target Gen Z consumers with a new FCUK product range to
increase overall company sales by 35%, by 31st Dec 2017.
Gregory Noel-Butterworth S12794493
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Communications
 To reach an additional 80,000 Gen Z consumers through a
combination of social media/online sites
(Facebook/Twitter/Instagram/Snapchat/YouTube) to facilitate a 50%
increase in online mentions by 1st April 2016 (therefore improving
brand recall)
 To persuade 20% of Gen Z consumers to switch from Topshop and
Zara to trial FCUK products by 31st Dec 2017. Communications must
demonstrate FCUK’s superior benefits.
Key Gen Z Characteristics
Socio Economic
 Targeting male 13-24 y/o.
 Students/part-time jobs (C2DE roles)
 Live at university or with parents.
 Huge purchasing power (high disposable income due to no
childcare/mortgage commitments).
(Passport, 2011)
Mass/Targeted/Niche
Campaign must be niche focused as Gen Z consumers represent a distinctive
part of the market, and have very specific needs that need to be tailored for
(West et al, 2006).
7
Strategic Implications
Must focus only on UK (as success in this country underpins the success of
FC globally), and center campaign on the needs of Gen Z consumers
(psychographics).
Audience Readiness (DAGMAR)
The lack of advertising of the FCUK brand means that FCUK have missed out
on recent generations (Barnes, 2004). Gen Z consumers are unaware of the
FCUK brand, meaning this generation are unlikely to take action and buy
FCUK products (Koekemoer, 2004).
Strategic Considerations
This campaign must focus on the cognitive stage and make Gen Z consumers
aware of FCUK’s new brand identity/products (Brierley, 1995).
Upon achieving awareness, your campaign must achieve the subsequent
DAGMAR objectives (Appendix 5).
Media Consumption
 Heavy users of social media. ‘Addicted’ to
Instagram/Whatsapp/Snapchat/Vine/Tumblr/YouTube.
 Avoid using Facebook and Twitter.
 Rarely read print magazines/newspapers, however, online versions of
FHM/ZOO/T3/Futures Fast Car/XBOX One or PS4 and Nuts are
popular.
(Blodget, 2014)
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Psychographics
 Motivated to make world a better place. Regard social justice/absence
of discrimination as more important than money/status. Take
environmental issues very seriously.
 Brand aware and highly influenced by opinion leaders/friends.
 Prefer brands that have a social purpose and have connection with
music/imagery.
 Enjoy online gaming/cinema/social networking.
(Passport, 2011)
(Please see appendix 6 for a more in-depth view of a typical Gen Z male)
Key Product Considerations
 Campaign must focus on design/branding (tangible) and symbolic
value (augmented) to create a distinctive position as a fashion brand,
and to separate the brand from discount retailers (Zara/Topshop)
(Brïdson & Evans, 2004).
 Branding/Design should be exclusive to Gen Z consumer and link with
music/strong visuals (Passport, 2011)
 Symbolism must represent the aspirations of the brand wearer (Evans,
1989), therefore, FCUK must be symbolised as a brand fighting to
make the world a better place (matches with Gen Z aspirations).
 Previous considerations will contribute to the attribute of ‘brand
ownership’ (Goodyear, 1996). Gen Z consumers must perceive FCUK
as a brand ‘for them’, which reflects their personalities and aspirations.
9
 Market Position – Campaign must separate FCUK from being
associated with mid-market brands such as Zara/Topshop. You must
advertise FCUK as a fashionable brand that competes at a higher end
of the market and has a symbolic value to Gen Z consumers.
(Appendix 7)
 Proposition – ‘’FCUK is a young and energetic fashion brand that
strives to make the world a better place’’.
Message Structure
Notes
Ad
Design
Consumers lack awareness of the new FCUK brand, therefore, the initial
message must raise awareness amongst Gen Z consumers
Advertisements should ‘subtly’ use the brand, as Gen Z consumers are critical of
intrusively branded advertisements. Subtle use of the brand is seen as more
credible, and is likely to be ‘shared’ with online friends (Passport, 2011).
Although from a fairly low context culture, Gen Z consumers value imagery over
words (Passport, 2011) – more emphasis on imagery should be given.
Gen Z consumers prefer buzz/social media/online advertisements (Passport,
2011) – call to action to be made through these methods to visit a dedicated
FCUK website.
Headline and strapline to be centered on promoting the brand values of ‘making
the world a better place’.
Communication of benefits to be centered on design/brand (tangible) and FCUK’s
Gregory Noel-Butterworth S12794493
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symbolic value (augmented).
Ad
Strategy
Gen Z Respond To: Music/endorsements from opinion
leaders/visuals/humour/brand story/aspirational attributes (You can use a range of
these).
Gen Z Do Not Respond To: Intrusive messages/fear/repetition.
(Passport, 2011)
11
Media Strategy
Media
Mix
Qualities Targeting and Promo
Tool
Mobile
Phone/
Text
 Allows for peer-to-peer marketing –
power of this type of marketing huge on
Gen Z consumers as it’s seen as a
credible method, and serves to increase
attention and dwell time on
advertisements (Passport, 2011).
 Gen Z often text to send advertisement
videos to friends. Text marketing
programs are very popular amongst
demographic (Relander, 2014)
 FCUK video content targeted at Gen Z
consumers will result in these
consumers texting the ‘link’ to a large
number of friends (Relander, 2014)
 Method increases brand loyalty,
preference and demand amongst Gen Z
consumers (Relander, 2014)
Targeting
Consumers
Promo
Direct
Marketing – contacting
consumers directly and
developing a long-term
relationship.
Social
Media
(Specifics in
‘media
consumption’
 Instagram popular amongst Gen Z, and
supports 15-second videos (Martin-
Willbourn, 2013), giving FCUK a real
opportunity (due to short attention
span/preference for visual
Targeting
‘’Consumer
&
Businesses
(an increased brand
Gregory Noel-Butterworth S12794493
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section) advertisements of Gen Z) (Passport,
2011).
 Cost-effective way of reaching wide
audience.
 Gen Z brand preferences heavily
influenced by opinions of friends on
social media (Passport, 2011).
preference pressures
retailers to stock FCUK
goods)’’
Promo
Increased social media
presence will come from
awareness through
advertising.
YouTube  Gen Z heavy users of YouTube, and
watch 2x more videos than any other
demographic (Relander, 2014).
 Gives FCUK opportunity to align brand
with strong visuals/music.
Targeting
‘’ ‘’
Promo
Advertising (advertise
before popular Gen Z
videos)
Events  Opportunity to develop FCUK’s brand
values, i.e. a gig centered around
raising money for GreenPeace would
align FCUK with the aspirations of Gen
Z consumers.
 Opportunity to gain coverage from
bloggers/social media alongside PR
coverage from invited journalists of
magazines such as Vice (Relander,
Targeting
Consumer/
Businesses/
Internal (staff motivated as
working for conscious/
fun brand)
Promo
Sponsorship, as
musicians/opinion leaders
13
2014). will endorse brand by
wearing it.
PR from attending
journalists.
Online
Magazines
(See
‘readership’)
 Can alter advertisements tone of voice
to appeal to different types of Gen Z
consumers
Targeting
Consumers
Promo
Advertising
Please note – Gen Z consumers do not respond to billboards/TV/print
newspaper advertisements (Passport, 2011).
Advertising Objective
After considering the information available on this report, your advertising
objective is to:
 Inform male Gen Z consumers of FCUK’s new brand characteristics
through the use of advertising on the target market’s proffered social
media sites. The campaign must increase awareness in 150,000 Gen Z
male consumers by 1stApril 2016. (Measured with statistics on
‘views/online traffic/followers/likes).
Mandates
The desperate need to revitalise the FCUK brand means that more freedom
has been given (in terms of the logo/fonts/colours).
Gregory Noel-Butterworth S12794493
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Integration
Example of Integration Estimated Costs Rough
Schedule
Stage
1
Advertisements to run on popular Gen Z
YouTube videos, persuading consumers to
text FCUK for a chance to win free tickets to
a FCUK event.
YouTube advertisement
costs are done ‘per
view’.
Average cost of an ad
viewed is £15.
(Alleger, 2012)
Jan-April
2016
Stage
2
FCUK text winner with free tickets, and link
to promotional video of event.
Text marketing costs
range from 3.4p per text
(when reaching 10,000 –
24,999 people), to 3.2p
per text (when reaching
100,000-249,999
people).
(TextMarketer, 2015)
April
2016
Stage
3
Winners will then share video (which will
have details on how to purchase tickets)
with friends through text/social media so
other friends can attend.
Free
April-
June
2016
Stage
4
The event will use musicians that heavily
influence the opinions of Gen Z consumers.
Musicians will wear the new FCUK clothing
range to increase interest and desire in the
brand.
Venue
rental/artists/advertising
costs/equipment
rental/ticket
manufacture will cost in
the region of £10,000-
£60,000 if using
established artists/DJ’s.
(McDonald, 2014)
June
2016
15
Stage
5
Pictures/videos/mentions of the event will
start to appear on social media
sites/YouTube. Alongside this, the invited
journalists will be compelled to write positive
reviews of the event in online magazines.
FCUK will benefit from free peer-to-peer
endorsements and PR.
Free
June-
July
2016
Evaluation
Advertising effectiveness measured by:
 Evaluation on whether the campaign achieved the briefs objectives.
 Focus groups to measure whether the campaign successfully modified
the brands identity to its desired position.
 Analysis of online/social media statistics (e.g.
traffic/mentions/views/followers).
 The use of paid evaluation services (Universal McCann) to evaluate
data on ad recognition and media effectiveness.
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Appendix 1 – Examples of Previous Campaigns Vs. Competitors
1.0
The 2006 ‘Fashion vs. Style’ campaign that attempted to differentiate the
brand through sex, humour and violence. The campaign made consumers
decide upon which ‘side’ they were on. The campaign was met with public
scrutiny as over 120 complaints were generated from within the first week of
release as it was thought to insight random acts of violence (FashionReview,
2011).
This advert did little to resurrect the brand, as for the first time, profits swung
from £5.1m in the green, to losses of £3.6m. Therefore, this campaign is seen
as a massive failure and elements of this campaign should not be repeated
(FashionReview, 2011).
Link to T.V Advert: https://www.youtube.com/watch?v=oQvSmSixxsU
Screenshot as an example: Source – FashionReview (2011)
17
1.1
French Connection ran their shock 2013 ‘From Sketch to Store’ campaign on
print, online and outdoor, however, the campaigns’ risqué approach failed to
attract custom and led to a further 8% in UK sales (Ruddick, 2013).
This serves as another reminder to eliminate aspects of ‘sex’ in future
campaigns, as historically, this ideal has failed to work.
Campaign Examples: Source – Burgoyne (2013)
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1.2 – Competitors
H&M and Zara
H&M’s style of advertising highlights the fact that consumers can acquire
‘fashion and quality at the best price (HM.COM, 2015), and therefore
communicate the savings that consumers can make when choosing H&M over
brands such as FC.
Furthermore, the use of celebrity endorsement (e.g. David Beckham’s clothing
range) has served to increase the brands popularity amongst impressionable
Gen Z consumers (Telegraph, 2015).
This is also true of Zara. The Duchess of Cambridge has often been photographed
wearing Zara products. Although this form of celebrity endorsement may be
unintentional, it still led to a surge in profitability for the Zara brand (Waterlow,
2012).
FC’s lack of celebrity endorsements (in advertising) may have contributed to
their downfall, as its clear to see that the use of David Beckham has significantly
improved the fortunes of H&M (Telegraph, 2015).
Example of H&M advertisement – Source Telegraph, 2015
From Telegraph, 2015
19
Example of Zara brand endorsement – Source DailyMail, 2012
The Duchess of Cambridge is often
photographed wearing Zara products.
This acts as a free and credible method of
celebrity endorsement and has
contributed to a surge in demand for
items worn by the Duchess of Cambridge
(DailyMail, 2012).
Gregory Noel-Butterworth S12794493
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Appendix 2.0 – SWOT Analysis
Strengths
 FC’s new design team is highly skilled, and are looking to give FC’s
brands clear aesthetic definitions that can be easily communicated to
consumers (Ruddick, 2013).
 Strong leadership. Mr. Marks (owner) has lead the company since its
inception and has a clear vision on creating success for FC in the UK
market (Ruddick, 2013)
 FC are still profitable in regions such as North America (£6.2m profit in
2013) (Ruddick, 2013).
Weaknesses
 FC still making a loss in the UK – reducing their ability to match profit
making competitors in terms of advertising spend (Ruddick, 2013)
 Confusion on FC aesthetic definition still exists in consumers.
 FCUK brand has been forgotten about in recent UK generations as
FCUK didn’t respond to changes in fashion tastes and consumer
trends (Gonsalves, 2012).
Opportunities
 A gap in the market exists in youth and teenage specific fashion wear.
Market is currently focused on children’s/adult fashion wear (Keynote,
2015).
21
 E-Commerce is creating opportunities for fashion brands as it enables
them to specifically target tech savvy consumers (Gen Z). Gen Z
consumers often make impulse purchase decisions on the move via
tablets/smartphones (Keynote, 2015).
 Generation Z consumers are highly influenced by celebrities/opinion
leaders. Celebrity collaborations (with fashion brands) is proven to
have a very high success rate (Keynote, 2015).
Threats
 Competitors with more advertising spend may react to FCUK’s new
campaign and take their share of voice.
 An increase in manufacturing costs has occurred due to the higher
minimum wages of overseas manufacturers. This could potentially
squeeze out Gen Z consumers as their earnings are not rising in line
with the increased prices that fashion brands are forced to incur.
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Appendix 2.1 – PEST Analysis
Political Considerations
 Interest rates are at an all time low (0.5%), meaning that firms in the
fashion industry can borrow large amounts of money at lower rates
(BBC, 2015)
 UK is a low risk political environment, and offers UK fashion brands the
opportunity to make secure long term capital investments (CIA, 2013)
 Corporation tax has been lowered in order to stimulate economic
activity (Telegraph, 2012).
Economic
 Weakened state of the economy (since the 2008 recession) has
impacted the clothing industry significantly. Rising production costs has
forced manufacturers to increase prices. This, on top of a lack of
consumer confidence, has caused spending to fall on the high-street
(Keynote, 2014).
 However, improvements n the housing market, and increases in
personal tax allowances have improved consumer confidence in 2014.
Consumer spending grew by 1.9% in 2014, and is expected to grow to
2.2% in 2015 (returning it to levels seen before the financial crisis of
2008) (Keynote, 2014).
Social
23
 An APPG study on body image found that 60% of young adults feel
ashamed about the way they looked. Part of this growing level of body
dissatisfaction has been put down to the increasing levels of
advertising coverage dedicated towards promoting unattainable/ideal
body shapes. Analysts suggest that the fashion industry should do
more to develop advertising campaigns that reflect greater body
diversity (Keynote, 2014).
Technological
 The rise of e-commerce has been significant. The online retail market
was worth £78bn in 2012, and since then, sales have grown quarter on
quarter (Keynote, 2014).
 Online clothing segment grew by 29% in 2013, and is continuing to
grow year on year (Keynote, 2014).
Increased use of smartphone and tablets are continuing to facilitate the
growth in online sales (Keynote, 2014).
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Appendix 3 – Product Life Cycle
Below is a diagram of French Connection’s current UK product life cycle.
Source for figures on Market Share and Growth – Passport (2013)
Key
MS = Market
Share
Apparel MS =0.2%-0.2%
Period = 2009-13
Apparel Accessories MS
=1.3%-1.3%
Period = 2009-13
Menswear MS =0.6%-
0.6%
Period = 2009-13
Men’s Outerwear MS
=0.6%-0.7%
Period = 2009-13
Womenswear MS
=0.1%-0.1%
Period = 2009-13
Fragrances MS =0.1%-
0.1%
Period = 2009-13
25
Appendix 4 – Boston Matrix
French Connection are no longer competing with premium brands as the
brand has lost its value in the minds of its consumers (Ruddick, 2013)
French Connection’s biggest competitors are now Zara and Topshop as
consumers have switched from French Connection to these cheaper and
more stylish alternatives meaning that the company has lost ground in the
upper/middle market (Gonsalves, 2012). Zara and Topshop have been used
in this Boston Matrix to better understand French Connection’s relative market
share and growth.
Key product categories from each brand have been used to help analyse
French Connection’s current position.
Key
French Connection Product Colour – Blue
Zara Product Colour – Red
Topshop Product Colour – Green
MS=Market Share. Market growth is measured from the period of 2009-13
MarketGrowthRate
Periodof2009-13
Relative Market Share High
High
Low
Low
Question Marks Stars
Dogs Cash Cows
Fragrances
MS=0.1%-0.1%
Menswear
MS=1.2%-1.4%
Men’s
Outerwear
MS=1.2%-1.4%
Apparel
Accessories
MS=1.3%-1.3%
Womenswear
MS=0.1%-0.1%
Men’s
Outerwear
MS=0.6%-0.7%
Apparel
MS=0.6%-0.7%
Apparel
MS=0.2%-0.2%
Menswear
MS=0.6%-0.6%
Womenswear
MS=0.7%-0.8%
Apparel
MS=0.7%-0.9%
Menswear
MS=1.9%-2%
Womenswear
MS=1.1%-1.1%
Men’s
Outerwear
MS=2.1%-2.2%
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Appendix 5 – DAGMAR Objectives
Stage Campaign Objectives
Awareness  Make Gen Z consumers aware
of FCUK’s new brand identity.
 Make Gen Z consumers aware
of FCUK’s new product range.
Comprehension  Give Gen Z consumers an
understanding of the purpose
of the resurrected FCUK brand
(I.e. a fashionable brand
tailored to the needs of Gen Z
consumers/the new brand
takes social responsibility
seriously, and is in tune with
the issues that Gen Z
consumers are faced with.
Conviction  Make Gen Z consumers feel a
connection with the brand by
matching the needs of the
consumer (e.g. the for a
fashion brand that takes CSR
very seriously) with the
promise of the product (e.g.
FCUK will tackle contemporary
problems such as issues with
the environment)
Action  Entice Gen Z consumers to
take action and purchase
FCUK products.
Information on the needs of Gen Z consumers from – Passport, 2011.
DAGMAR model principles from – Brierley, 1995.
Cognitive/KnowledgeAffective/FeelingsConative
27
Appendix 6 – In depth view of a Gen Z male
Key Gen Z Characteristics
Socio Economic
 Male 13-24 y/o. Represent 14% of UK population.
 Students/work in P/T C2D roles (skilled/semi/unskilled manual labour
work)
 Live with parents/university. 40% live in households with income less
than £32,822 (parents=C2DE roles), whilst 40% live in households with
income £50,000+ (parents=ABC1 roles – Higher to intermediate
managerial roles, professional roles and administrative roles.
 Huge purchasing power through P/T jobs/financial gifts through family.
Majority of income is disposable (no childcare/mortgage commitments).
Pester power strong amongst younger Gen Z members, and plays
huge part in family purchase decisions.
(Passport, 2011)
Media Consumption
 Heavy users of social media, and are ‘addicted’ to
Instagram/Snapchat/Vine/Tumblr/YouTube.
 Stay away from Facebook as its ‘used for old people posting pictures of
their kids’. Twitter use is also rare.
 Tumblr/Instagram – Used to share excitement/news about favourite
brands.
 Whatsapp – Used to send links of brand events/videos/news to large
number of friends.
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 Snapchat/Instagram – Used to ‘brag’ about being at events/acquiring
favourite brands.
 Readership – Read online versions of magazines including, FHM, Zoo,
T3, Futures Fast Car, XBOX, Nuts and T3. Newspaper readership is
low.
(Blodget, 2014)
Psychographics
 Motivated to make world a better place (Wallop, 2014).
 Highly individualistic, skeptical and self-directed.
 Make risky fashion choices.
 Community-minded attitude, and take environmental issues very
seriously – 81% are concerned by global warming.
 Mature at younger age (vs. previous generations) in terms of fashion
choices and opinion.
 Less discriminating as bought up in a politically correct and
multicultural society.
 Regard social justice and absence of discrimination as more important
than money/status.
 Very brand aware. Highly influenced by opinion leaders/friends.
 Enjoy brands that have a story/social purpose. Prefer brands to be
connected with music/imagery.
 Popular activities: Online gaming/cinema/shopping with friends/social
networking.
(Passport, 2011)
29
Appendix 7 – Proposed Market Position
Luxury/High End Fashion
Brand
Discount Fashion Brand
Emphasis on
symbolic
brand messages
Standardised
brand
messages
Zara
Topshop
H&M
Levi Strauss
Louis
Vuitton
Chanel
Diesel
Ralph
Lauren
FCUK
Your campaign must separate FCUK from the circled discounted retailers as
consumers are currently confused with FCUK’s current product offering, meaning that
they associate FCUK with said discounted retailers.
The campaign should align FCUK with youthful/energetic and high end fashion
brands such as Levi Strauss.
Gregory Noel-Butterworth S12794493
30
References
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Tweens and Teens. Available:
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10th Feb 2015.
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accessed 4th Feb 2015.
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Available: https://www.portal.euromonitor.com/portal/statistics/tab. Last
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5th Feb 2015.
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Have $44 Billion to Spend. Available:
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2015.
 Ruddick, G. (2013). From FCUK to seeing red, French Connection falls
to loss. Available:
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28513/From-FCUK-to-seeing-red-French-Connection-falls-to-loss.html.
Last accessed 4th Feb 2015.
 Telegraph. (2012). Budget 2012: Corporation tax cut will boost UK - but
not enough Find out more from UK Essays here:
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pestle-analysis.php#ixzz3RoSLb2PC. Available:
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Corporation-tax-cut-will-boost-UK-but-not-enough.html . Last accessed
14th Feb 2015.
 Telegraph. (2015). David Beckham unveils new menswear range for
H&M. Available: http://www.telegraph.co.uk/men/fashion-and-
style/11356996/David-Beckham-unveils-new-menswear-range-for-
HandM.html?frame=3170388. Last accessed 11th Feb 2015.
 TextMarketer. (2015). Bulk SMS prices. Available:
http://www.textmarketer.co.uk/bulk-sms-prices. Last accessed 11th
Feb 2015.
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generations. Available:
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baby-boomers-a-guide-to-the-generations.html. Last accessed 10th
Feb 2015.
 Waterlow, L. (2012). What Kate could wear next: As the boss of the
Duchess of Cambridge's favourite High Street store is named the
world's THIRD richest man, we look at Zara's latest looks. Available:
http://www.dailymail.co.uk/femail/article-2185477/Duchess-
Cambridges-favourite-High-Street-store-Zara-We-look-latest-
looks.html. Last accessed 11th Feb 2015.
 West, D; Ford, J; Ibrahim, E (2006). Strategic Marketing Creating
Competitive Advantage. Oxford: Oxford University Press. p320-325.
 Youtube. (2012). FCUK Advert. Available:
https://www.youtube.com/watch?v=oQvSmSixxsU. Last accessed 4th
Feb 2015.

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Complete Contemp Marketing

  • 1. Contemporary Advertising MKT 6014 Gregory Noel-Butterworth – S12794493 Word Count: 1645 (Minus Tables) Table of Contents SITUATIONAL ANALYSIS 1-4 OBJECTIVES 5-6 CUSTOMER PROFILE 6-8 PRODUCT CONSIDERATIONS 8-9 MESSAGE STRUCTURE 9-10 MEDIA STRATEGY 11-13 ADVERTISING OBJECTIVE AND MANDATES 13 INTEGRATED MARKETING COMMUNICATIONS 14-15 APPENDIX 1.0 – 1.2 CAMPAIGN EXAMPLES 16-19 APPENDIX 2.0-2.1 SITUATIONAL ANALYSIS 20-23 APPENDIX 3 PRODUCT LIFE CYCLE 24 APPENDIX 4 BOSTON MATRIX 25 APPENDIX 5 DAGMAR 26 APPENDIX 6 CUSTOMER ANALYSIS 27-28 APPENDIX 7 PROPOSED MARKET POSITION 29 REFERENCES 30-35
  • 2. 1 Background Founded in 1972, French Connection (FC) was built on the value of innovative clothing that appealed to a broad range of consumers (FrenchConnection, 2015), however, the company now finds itself in a decade long stage of restructuring in order to return to meaningful profits (Barmby, 2014). Known for their individualistic approach to fashion, the company’s 1997 FCUK branding campaign put FC at the forefront of the publics mind and led to a significant increase in sales (Barmby, 2014). During this period the brands acronym was received well by forward thinking 18-35 year olds who embraced the slogans shock value as it was seen as a way to communicate ‘anti-establishment’ ideals (traits common at the time) (Barnes, 2004). Yet, the success of the FCUK brand was short lived, highlighted by a 2004 Draper’s Report that found consumers saw FCUK as ‘tired/tacky’ (Barnes, 2004). The impact of FC’s use of shock/sex in its advertisements (to differentiate) started to wane as consumers found adverts ‘boring/over-replicated’ (appendix 1.0) (Barmby, 2014). Consistent failure with advertising led to a 60% drop in profits (Barnes, 2004). Furthermore, the ‘anti-establishment’ target market had grown up (Payne, 2004) and become disillusioned with FC’s aesthetic definition (Ruddick, 2013). For example, FC was associated with pretty dresses/smart shirts, yet FCUK were still attempting to break fashion rules (Gonsalves, 2012).
  • 3. Gregory Noel-Butterworth S12794493 2 FC’s 2013 ‘risqué’ sketch campaign (appendix 1.1) attempted to remind consumers of the fearless attitude that made the FC brand desirable, however, the campaign led to an 8% reduction in UK sales (Ruddick, 2013). The use of celebrity endorsements in advertisements (appendix 1.2) from Zara/Topshop were preferred and led to these competitors gaining market share on FC (Ruddick, 2013) Consistently poor advertising, on top of the confusion between FC and its FCUK brand has put the company in a poor UK position, evidenced by the fact that FC are attempting to close 15 UK stores (Ruddick, 2013). (Appendix 2 and 2.1 offer an in-depth snapshot into FC’s current position) Product Life Cycle Appendix 3 shows that FC’s UK products are in the maturity stage suggesting that FC operate in a highly saturated market (Arens et al, 2008). The continual erosion of FC’s profits (Ruddick, 2013) is down to the fact that their products have plateaued for over 4 years, meaning that consumers no longer perceive an advantage when using the products (Lee & Carter, 2012), which has led to consumers buying cheaper alternatives (Zara/Topshop) (Gonsalves, 2012). Strategic Considerations To arrest this continual erosion of profits, you must design a campaign that rebrands the FCUK brand to a new generation by giving it a newfound identity. The campaign must educate customers of the purpose behind the brand to ensure FC achieves a healthier product life cycle to ensure long-term
  • 4. 3 strategic success. Initially, this should be done through increased targeting (UK Gen Z consumers) through direct marketing. Boston Matrix Comparison of FC’s Boston Matrix with its competitors (appendix 4) shows that the company’s product portfolio is unhealthy. The majority of products are in the ‘Dogs’ section, meaning that these products are contributing to FC’s financial losses (Lee & Carter, 2012). Strategic Implications Your campaign should focus on revitalizing/rebranding the ‘Dogs with the highest market share (Menswear/Outerwear) through an exciting FCUK branding strategy that gives consumers an understanding of what the new FCUK stands for. A new clothing range specifically targeted to Gen Z consumers should be developed. Brand Perception  A perceptual gap exists between the brand and the products. The product offers styles cut for a youthful audience with a level of quality that doesn’t match up to the promise of the brands communications.  Neither seen as low-price, or high-fashion. Seen as ‘middle-of-the-road’ with no real consumer value. (Benjamin, 2012)
  • 5. Gregory Noel-Butterworth S12794493 4 Strategic Implications Your campaign should give FC a clear position by bringing more excitement, cultural relevance, theatre and desire (Benjamin, 2012). The newfound positioning must differentiate the brand by identity and focus on special attributes that match up to the aspirations of our consumers (see ‘Gen Z psychographics’). Key Insights into the Apparel & Non-Apparel Manufacturing Market (UK)  FC’s Market share fell from 1.6% (2010) to 1.4% (2014) (MarketLine, 2014).  The market declined in 2013, yet has a predicted compound annual growth rate of 3.1% (over next 5 years), driving total market value to £15.79bn (MarketLine, 2014). Yet the ‘Youth Male Fashionwear’ segment grew 31.1% over the last 5 years (Keynote, 2014).  FC operate in a highly competitive, fragmented and saturated market (MarketLine, 2014) and are losing ground in the upper/middle market (Ruddick, 2013) as cheaper alternatives (Zara/Topshop) continue to eat into FC’s market share (Gonsalves, 2012).  Over the next 5 years, high growth expected in ‘youth male fashionwear’ (defined as 13-24 y/o) segment (Keynote, 2014) Strategic Implications Your campaign should increase consumer demand to regain lost market share and take advantage of the markets’ forecasted 16.1% value increase
  • 6. 5 (2018) (MarketLine, 2014). Focusing your campaign on Gen Z males will give you the best chance of achieving this. Conclusion Although in an unfavourable position, FC are a sleeping giant and are one campaign away from becoming the force they once were (Barmby, 2014). Your campaign must give consumers an emotional connection with the new FCUK brand to create valued brand characteristics. Clear positioning of the FCUK brand will improve the health of FC’s product portfolio, which will then place FC in a good position to take advantage of the forecasted market growth. Objectives Corporate  To return FC to a UK profit of at least £10m by 31st Dec 2017.  To create a distinctive position for the FCUK brand amongst Gen Z consumers by modifying the brands identity to one that works to make the world a better place (see psychographics) by 1st April 2016. (Measured using focus groups) Marketing  To increase market share to 2% of the total UK ‘Apparel and non- apparel manufacturing market’ by 31st Dec 2017.  To target Gen Z consumers with a new FCUK product range to increase overall company sales by 35%, by 31st Dec 2017.
  • 7. Gregory Noel-Butterworth S12794493 6 Communications  To reach an additional 80,000 Gen Z consumers through a combination of social media/online sites (Facebook/Twitter/Instagram/Snapchat/YouTube) to facilitate a 50% increase in online mentions by 1st April 2016 (therefore improving brand recall)  To persuade 20% of Gen Z consumers to switch from Topshop and Zara to trial FCUK products by 31st Dec 2017. Communications must demonstrate FCUK’s superior benefits. Key Gen Z Characteristics Socio Economic  Targeting male 13-24 y/o.  Students/part-time jobs (C2DE roles)  Live at university or with parents.  Huge purchasing power (high disposable income due to no childcare/mortgage commitments). (Passport, 2011) Mass/Targeted/Niche Campaign must be niche focused as Gen Z consumers represent a distinctive part of the market, and have very specific needs that need to be tailored for (West et al, 2006).
  • 8. 7 Strategic Implications Must focus only on UK (as success in this country underpins the success of FC globally), and center campaign on the needs of Gen Z consumers (psychographics). Audience Readiness (DAGMAR) The lack of advertising of the FCUK brand means that FCUK have missed out on recent generations (Barnes, 2004). Gen Z consumers are unaware of the FCUK brand, meaning this generation are unlikely to take action and buy FCUK products (Koekemoer, 2004). Strategic Considerations This campaign must focus on the cognitive stage and make Gen Z consumers aware of FCUK’s new brand identity/products (Brierley, 1995). Upon achieving awareness, your campaign must achieve the subsequent DAGMAR objectives (Appendix 5). Media Consumption  Heavy users of social media. ‘Addicted’ to Instagram/Whatsapp/Snapchat/Vine/Tumblr/YouTube.  Avoid using Facebook and Twitter.  Rarely read print magazines/newspapers, however, online versions of FHM/ZOO/T3/Futures Fast Car/XBOX One or PS4 and Nuts are popular. (Blodget, 2014)
  • 9. Gregory Noel-Butterworth S12794493 8 Psychographics  Motivated to make world a better place. Regard social justice/absence of discrimination as more important than money/status. Take environmental issues very seriously.  Brand aware and highly influenced by opinion leaders/friends.  Prefer brands that have a social purpose and have connection with music/imagery.  Enjoy online gaming/cinema/social networking. (Passport, 2011) (Please see appendix 6 for a more in-depth view of a typical Gen Z male) Key Product Considerations  Campaign must focus on design/branding (tangible) and symbolic value (augmented) to create a distinctive position as a fashion brand, and to separate the brand from discount retailers (Zara/Topshop) (Brïdson & Evans, 2004).  Branding/Design should be exclusive to Gen Z consumer and link with music/strong visuals (Passport, 2011)  Symbolism must represent the aspirations of the brand wearer (Evans, 1989), therefore, FCUK must be symbolised as a brand fighting to make the world a better place (matches with Gen Z aspirations).  Previous considerations will contribute to the attribute of ‘brand ownership’ (Goodyear, 1996). Gen Z consumers must perceive FCUK as a brand ‘for them’, which reflects their personalities and aspirations.
  • 10. 9  Market Position – Campaign must separate FCUK from being associated with mid-market brands such as Zara/Topshop. You must advertise FCUK as a fashionable brand that competes at a higher end of the market and has a symbolic value to Gen Z consumers. (Appendix 7)  Proposition – ‘’FCUK is a young and energetic fashion brand that strives to make the world a better place’’. Message Structure Notes Ad Design Consumers lack awareness of the new FCUK brand, therefore, the initial message must raise awareness amongst Gen Z consumers Advertisements should ‘subtly’ use the brand, as Gen Z consumers are critical of intrusively branded advertisements. Subtle use of the brand is seen as more credible, and is likely to be ‘shared’ with online friends (Passport, 2011). Although from a fairly low context culture, Gen Z consumers value imagery over words (Passport, 2011) – more emphasis on imagery should be given. Gen Z consumers prefer buzz/social media/online advertisements (Passport, 2011) – call to action to be made through these methods to visit a dedicated FCUK website. Headline and strapline to be centered on promoting the brand values of ‘making the world a better place’. Communication of benefits to be centered on design/brand (tangible) and FCUK’s
  • 11. Gregory Noel-Butterworth S12794493 10 symbolic value (augmented). Ad Strategy Gen Z Respond To: Music/endorsements from opinion leaders/visuals/humour/brand story/aspirational attributes (You can use a range of these). Gen Z Do Not Respond To: Intrusive messages/fear/repetition. (Passport, 2011)
  • 12. 11 Media Strategy Media Mix Qualities Targeting and Promo Tool Mobile Phone/ Text  Allows for peer-to-peer marketing – power of this type of marketing huge on Gen Z consumers as it’s seen as a credible method, and serves to increase attention and dwell time on advertisements (Passport, 2011).  Gen Z often text to send advertisement videos to friends. Text marketing programs are very popular amongst demographic (Relander, 2014)  FCUK video content targeted at Gen Z consumers will result in these consumers texting the ‘link’ to a large number of friends (Relander, 2014)  Method increases brand loyalty, preference and demand amongst Gen Z consumers (Relander, 2014) Targeting Consumers Promo Direct Marketing – contacting consumers directly and developing a long-term relationship. Social Media (Specifics in ‘media consumption’  Instagram popular amongst Gen Z, and supports 15-second videos (Martin- Willbourn, 2013), giving FCUK a real opportunity (due to short attention span/preference for visual Targeting ‘’Consumer & Businesses (an increased brand
  • 13. Gregory Noel-Butterworth S12794493 12 section) advertisements of Gen Z) (Passport, 2011).  Cost-effective way of reaching wide audience.  Gen Z brand preferences heavily influenced by opinions of friends on social media (Passport, 2011). preference pressures retailers to stock FCUK goods)’’ Promo Increased social media presence will come from awareness through advertising. YouTube  Gen Z heavy users of YouTube, and watch 2x more videos than any other demographic (Relander, 2014).  Gives FCUK opportunity to align brand with strong visuals/music. Targeting ‘’ ‘’ Promo Advertising (advertise before popular Gen Z videos) Events  Opportunity to develop FCUK’s brand values, i.e. a gig centered around raising money for GreenPeace would align FCUK with the aspirations of Gen Z consumers.  Opportunity to gain coverage from bloggers/social media alongside PR coverage from invited journalists of magazines such as Vice (Relander, Targeting Consumer/ Businesses/ Internal (staff motivated as working for conscious/ fun brand) Promo Sponsorship, as musicians/opinion leaders
  • 14. 13 2014). will endorse brand by wearing it. PR from attending journalists. Online Magazines (See ‘readership’)  Can alter advertisements tone of voice to appeal to different types of Gen Z consumers Targeting Consumers Promo Advertising Please note – Gen Z consumers do not respond to billboards/TV/print newspaper advertisements (Passport, 2011). Advertising Objective After considering the information available on this report, your advertising objective is to:  Inform male Gen Z consumers of FCUK’s new brand characteristics through the use of advertising on the target market’s proffered social media sites. The campaign must increase awareness in 150,000 Gen Z male consumers by 1stApril 2016. (Measured with statistics on ‘views/online traffic/followers/likes). Mandates The desperate need to revitalise the FCUK brand means that more freedom has been given (in terms of the logo/fonts/colours).
  • 15. Gregory Noel-Butterworth S12794493 14 Integration Example of Integration Estimated Costs Rough Schedule Stage 1 Advertisements to run on popular Gen Z YouTube videos, persuading consumers to text FCUK for a chance to win free tickets to a FCUK event. YouTube advertisement costs are done ‘per view’. Average cost of an ad viewed is £15. (Alleger, 2012) Jan-April 2016 Stage 2 FCUK text winner with free tickets, and link to promotional video of event. Text marketing costs range from 3.4p per text (when reaching 10,000 – 24,999 people), to 3.2p per text (when reaching 100,000-249,999 people). (TextMarketer, 2015) April 2016 Stage 3 Winners will then share video (which will have details on how to purchase tickets) with friends through text/social media so other friends can attend. Free April- June 2016 Stage 4 The event will use musicians that heavily influence the opinions of Gen Z consumers. Musicians will wear the new FCUK clothing range to increase interest and desire in the brand. Venue rental/artists/advertising costs/equipment rental/ticket manufacture will cost in the region of £10,000- £60,000 if using established artists/DJ’s. (McDonald, 2014) June 2016
  • 16. 15 Stage 5 Pictures/videos/mentions of the event will start to appear on social media sites/YouTube. Alongside this, the invited journalists will be compelled to write positive reviews of the event in online magazines. FCUK will benefit from free peer-to-peer endorsements and PR. Free June- July 2016 Evaluation Advertising effectiveness measured by:  Evaluation on whether the campaign achieved the briefs objectives.  Focus groups to measure whether the campaign successfully modified the brands identity to its desired position.  Analysis of online/social media statistics (e.g. traffic/mentions/views/followers).  The use of paid evaluation services (Universal McCann) to evaluate data on ad recognition and media effectiveness.
  • 17. Gregory Noel-Butterworth S12794493 16 Appendix 1 – Examples of Previous Campaigns Vs. Competitors 1.0 The 2006 ‘Fashion vs. Style’ campaign that attempted to differentiate the brand through sex, humour and violence. The campaign made consumers decide upon which ‘side’ they were on. The campaign was met with public scrutiny as over 120 complaints were generated from within the first week of release as it was thought to insight random acts of violence (FashionReview, 2011). This advert did little to resurrect the brand, as for the first time, profits swung from £5.1m in the green, to losses of £3.6m. Therefore, this campaign is seen as a massive failure and elements of this campaign should not be repeated (FashionReview, 2011). Link to T.V Advert: https://www.youtube.com/watch?v=oQvSmSixxsU Screenshot as an example: Source – FashionReview (2011)
  • 18. 17 1.1 French Connection ran their shock 2013 ‘From Sketch to Store’ campaign on print, online and outdoor, however, the campaigns’ risqué approach failed to attract custom and led to a further 8% in UK sales (Ruddick, 2013). This serves as another reminder to eliminate aspects of ‘sex’ in future campaigns, as historically, this ideal has failed to work. Campaign Examples: Source – Burgoyne (2013)
  • 19. Gregory Noel-Butterworth S12794493 18 1.2 – Competitors H&M and Zara H&M’s style of advertising highlights the fact that consumers can acquire ‘fashion and quality at the best price (HM.COM, 2015), and therefore communicate the savings that consumers can make when choosing H&M over brands such as FC. Furthermore, the use of celebrity endorsement (e.g. David Beckham’s clothing range) has served to increase the brands popularity amongst impressionable Gen Z consumers (Telegraph, 2015). This is also true of Zara. The Duchess of Cambridge has often been photographed wearing Zara products. Although this form of celebrity endorsement may be unintentional, it still led to a surge in profitability for the Zara brand (Waterlow, 2012). FC’s lack of celebrity endorsements (in advertising) may have contributed to their downfall, as its clear to see that the use of David Beckham has significantly improved the fortunes of H&M (Telegraph, 2015). Example of H&M advertisement – Source Telegraph, 2015 From Telegraph, 2015
  • 20. 19 Example of Zara brand endorsement – Source DailyMail, 2012 The Duchess of Cambridge is often photographed wearing Zara products. This acts as a free and credible method of celebrity endorsement and has contributed to a surge in demand for items worn by the Duchess of Cambridge (DailyMail, 2012).
  • 21. Gregory Noel-Butterworth S12794493 20 Appendix 2.0 – SWOT Analysis Strengths  FC’s new design team is highly skilled, and are looking to give FC’s brands clear aesthetic definitions that can be easily communicated to consumers (Ruddick, 2013).  Strong leadership. Mr. Marks (owner) has lead the company since its inception and has a clear vision on creating success for FC in the UK market (Ruddick, 2013)  FC are still profitable in regions such as North America (£6.2m profit in 2013) (Ruddick, 2013). Weaknesses  FC still making a loss in the UK – reducing their ability to match profit making competitors in terms of advertising spend (Ruddick, 2013)  Confusion on FC aesthetic definition still exists in consumers.  FCUK brand has been forgotten about in recent UK generations as FCUK didn’t respond to changes in fashion tastes and consumer trends (Gonsalves, 2012). Opportunities  A gap in the market exists in youth and teenage specific fashion wear. Market is currently focused on children’s/adult fashion wear (Keynote, 2015).
  • 22. 21  E-Commerce is creating opportunities for fashion brands as it enables them to specifically target tech savvy consumers (Gen Z). Gen Z consumers often make impulse purchase decisions on the move via tablets/smartphones (Keynote, 2015).  Generation Z consumers are highly influenced by celebrities/opinion leaders. Celebrity collaborations (with fashion brands) is proven to have a very high success rate (Keynote, 2015). Threats  Competitors with more advertising spend may react to FCUK’s new campaign and take their share of voice.  An increase in manufacturing costs has occurred due to the higher minimum wages of overseas manufacturers. This could potentially squeeze out Gen Z consumers as their earnings are not rising in line with the increased prices that fashion brands are forced to incur.
  • 23. Gregory Noel-Butterworth S12794493 22 Appendix 2.1 – PEST Analysis Political Considerations  Interest rates are at an all time low (0.5%), meaning that firms in the fashion industry can borrow large amounts of money at lower rates (BBC, 2015)  UK is a low risk political environment, and offers UK fashion brands the opportunity to make secure long term capital investments (CIA, 2013)  Corporation tax has been lowered in order to stimulate economic activity (Telegraph, 2012). Economic  Weakened state of the economy (since the 2008 recession) has impacted the clothing industry significantly. Rising production costs has forced manufacturers to increase prices. This, on top of a lack of consumer confidence, has caused spending to fall on the high-street (Keynote, 2014).  However, improvements n the housing market, and increases in personal tax allowances have improved consumer confidence in 2014. Consumer spending grew by 1.9% in 2014, and is expected to grow to 2.2% in 2015 (returning it to levels seen before the financial crisis of 2008) (Keynote, 2014). Social
  • 24. 23  An APPG study on body image found that 60% of young adults feel ashamed about the way they looked. Part of this growing level of body dissatisfaction has been put down to the increasing levels of advertising coverage dedicated towards promoting unattainable/ideal body shapes. Analysts suggest that the fashion industry should do more to develop advertising campaigns that reflect greater body diversity (Keynote, 2014). Technological  The rise of e-commerce has been significant. The online retail market was worth £78bn in 2012, and since then, sales have grown quarter on quarter (Keynote, 2014).  Online clothing segment grew by 29% in 2013, and is continuing to grow year on year (Keynote, 2014). Increased use of smartphone and tablets are continuing to facilitate the growth in online sales (Keynote, 2014).
  • 25. Gregory Noel-Butterworth S12794493 24 Appendix 3 – Product Life Cycle Below is a diagram of French Connection’s current UK product life cycle. Source for figures on Market Share and Growth – Passport (2013) Key MS = Market Share Apparel MS =0.2%-0.2% Period = 2009-13 Apparel Accessories MS =1.3%-1.3% Period = 2009-13 Menswear MS =0.6%- 0.6% Period = 2009-13 Men’s Outerwear MS =0.6%-0.7% Period = 2009-13 Womenswear MS =0.1%-0.1% Period = 2009-13 Fragrances MS =0.1%- 0.1% Period = 2009-13
  • 26. 25 Appendix 4 – Boston Matrix French Connection are no longer competing with premium brands as the brand has lost its value in the minds of its consumers (Ruddick, 2013) French Connection’s biggest competitors are now Zara and Topshop as consumers have switched from French Connection to these cheaper and more stylish alternatives meaning that the company has lost ground in the upper/middle market (Gonsalves, 2012). Zara and Topshop have been used in this Boston Matrix to better understand French Connection’s relative market share and growth. Key product categories from each brand have been used to help analyse French Connection’s current position. Key French Connection Product Colour – Blue Zara Product Colour – Red Topshop Product Colour – Green MS=Market Share. Market growth is measured from the period of 2009-13 MarketGrowthRate Periodof2009-13 Relative Market Share High High Low Low Question Marks Stars Dogs Cash Cows Fragrances MS=0.1%-0.1% Menswear MS=1.2%-1.4% Men’s Outerwear MS=1.2%-1.4% Apparel Accessories MS=1.3%-1.3% Womenswear MS=0.1%-0.1% Men’s Outerwear MS=0.6%-0.7% Apparel MS=0.6%-0.7% Apparel MS=0.2%-0.2% Menswear MS=0.6%-0.6% Womenswear MS=0.7%-0.8% Apparel MS=0.7%-0.9% Menswear MS=1.9%-2% Womenswear MS=1.1%-1.1% Men’s Outerwear MS=2.1%-2.2%
  • 27. Gregory Noel-Butterworth S12794493 26 Appendix 5 – DAGMAR Objectives Stage Campaign Objectives Awareness  Make Gen Z consumers aware of FCUK’s new brand identity.  Make Gen Z consumers aware of FCUK’s new product range. Comprehension  Give Gen Z consumers an understanding of the purpose of the resurrected FCUK brand (I.e. a fashionable brand tailored to the needs of Gen Z consumers/the new brand takes social responsibility seriously, and is in tune with the issues that Gen Z consumers are faced with. Conviction  Make Gen Z consumers feel a connection with the brand by matching the needs of the consumer (e.g. the for a fashion brand that takes CSR very seriously) with the promise of the product (e.g. FCUK will tackle contemporary problems such as issues with the environment) Action  Entice Gen Z consumers to take action and purchase FCUK products. Information on the needs of Gen Z consumers from – Passport, 2011. DAGMAR model principles from – Brierley, 1995. Cognitive/KnowledgeAffective/FeelingsConative
  • 28. 27 Appendix 6 – In depth view of a Gen Z male Key Gen Z Characteristics Socio Economic  Male 13-24 y/o. Represent 14% of UK population.  Students/work in P/T C2D roles (skilled/semi/unskilled manual labour work)  Live with parents/university. 40% live in households with income less than £32,822 (parents=C2DE roles), whilst 40% live in households with income £50,000+ (parents=ABC1 roles – Higher to intermediate managerial roles, professional roles and administrative roles.  Huge purchasing power through P/T jobs/financial gifts through family. Majority of income is disposable (no childcare/mortgage commitments). Pester power strong amongst younger Gen Z members, and plays huge part in family purchase decisions. (Passport, 2011) Media Consumption  Heavy users of social media, and are ‘addicted’ to Instagram/Snapchat/Vine/Tumblr/YouTube.  Stay away from Facebook as its ‘used for old people posting pictures of their kids’. Twitter use is also rare.  Tumblr/Instagram – Used to share excitement/news about favourite brands.  Whatsapp – Used to send links of brand events/videos/news to large number of friends.
  • 29. Gregory Noel-Butterworth S12794493 28  Snapchat/Instagram – Used to ‘brag’ about being at events/acquiring favourite brands.  Readership – Read online versions of magazines including, FHM, Zoo, T3, Futures Fast Car, XBOX, Nuts and T3. Newspaper readership is low. (Blodget, 2014) Psychographics  Motivated to make world a better place (Wallop, 2014).  Highly individualistic, skeptical and self-directed.  Make risky fashion choices.  Community-minded attitude, and take environmental issues very seriously – 81% are concerned by global warming.  Mature at younger age (vs. previous generations) in terms of fashion choices and opinion.  Less discriminating as bought up in a politically correct and multicultural society.  Regard social justice and absence of discrimination as more important than money/status.  Very brand aware. Highly influenced by opinion leaders/friends.  Enjoy brands that have a story/social purpose. Prefer brands to be connected with music/imagery.  Popular activities: Online gaming/cinema/shopping with friends/social networking. (Passport, 2011)
  • 30. 29 Appendix 7 – Proposed Market Position Luxury/High End Fashion Brand Discount Fashion Brand Emphasis on symbolic brand messages Standardised brand messages Zara Topshop H&M Levi Strauss Louis Vuitton Chanel Diesel Ralph Lauren FCUK Your campaign must separate FCUK from the circled discounted retailers as consumers are currently confused with FCUK’s current product offering, meaning that they associate FCUK with said discounted retailers. The campaign should align FCUK with youthful/energetic and high end fashion brands such as Levi Strauss.
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