Research Paper
Q1. Describe the support services needed by buyers of the product/service. Describe the support services offered by the firm’s main competitor. How are they different? (Ch. 14)
Q2. Describe post-sale service arrangements the firm does or should provide. How does the firm’s repair/service efforts impact customer satisfaction? (Ch.14)
Q3. Discuss the firm’s new product screening process. Discuss possible sources of new product ideas. (Ch. 15)
Q4. Discuss the firm’s pricing method or methods. Explain the price adaptations (discounts, promotions, etc.) the firm should use. (Ch. 16)
Q5. Discuss the firm’s distribution strategy. Explain the channels used to distribute the product. (Ch. 17)
Forever 21 is the product
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FOREVER 21 2
Marketing Management Individual Project Module 5 (MMIP)
Faith Chibuzor Ogbonna
School of Business, Liberty University
Author Note
Faith Chibuzor Ogbonna
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Faith Chibuzor Ogbonna
Email:
fcogbonna@liberty.edu
Q1. Explain how the product/service is positioned in the market. Create a positioning statement for the product/service and explain its rationale. (Ch. 10)
Positioning Statement:
To Forever 21- an organization that creates trendy fashion wears for individuals of all ages and is one of the businesses leading in the fast fashion industry. They ensure to show appreciation to their employees. Because they value their customers, they strive to enhance their overall experience. Comment by Lorna DeShay: Good positioning statement. What is the rationale?
Forever 21 is an American-based fast-fashion retailer that gained popularity for its low-priced trendy offerings. The company, whose headquarters are in Los Angeles, California, was founded on April 16, 1984, as a family business by South Korean Do Won Chang and Jin Sook Chang (Forever 21, 2020). It sells clothing for men, women, and children, home goods, beauty products, and accessories. Forever 21, Inc. has over 600 stores in the United States, and across the world with several clothing lines such as Forever 21, Heritage, Love 21, and XXI Forever (Forever 21, 2020). In 2019, the retailer announced it would close some of its stores in 40 countries across the world as it filed for bankruptcy protection following a decline in sales (“Forever 21,” 2019). This report describes Forever 21, Inc.’s positioning and branding strategy. Comment by Lorna DeShay: Historical information should not be included within the positioning
Q2. Discuss techniques for building brand equity. Which brand elements would be most useful in differentiating the product/service from competitors? Explain the brand promise of the product/service. (Ch. 11)
Product positioning refers to the benefits that a product offers to the audience and distinguishes the product from competitors’ product offerings. Forever 21 has positioned itself as young and trendy with a fast-fashion model that gives customers access to the newest fashion trends at a low cost. The positioning statement of the product can be “Forever 21 is a fast-fashion retailer providing the newest trendy fashions for the young shoppers who are ready for a captivating shopping experience with an unprecedented flow of a variety of affordable on-trend fashion.” Forever 21 targets young consumers who are seeking for the new fashion trends but do not want to spend much on them. The target consumers will find satisfaction by wearing trendy clothing and will experience value for their purchase because the products have a lower price. The company provides a variety of upcoming fashion that enables young men and women to have fun wearing creative designs that come with great value. Comment by Lorna DeShay: This section should have coveredThere are three main ways to build brand equity: (1) brand elements including name, logo, slogan, spokespeople, etc.; (2) the marketing activities and programs; and (3) indirect transferred associations, like visual cues, that communicate a brand’s positioning.
Q3. Explain the organization’s market classification (leader, challenger, follower, or niche). Select one and omit the others. If it is not the industry’s market leader, which firm is the leader? Explain its strengths and weaknesses. (Ch. 12)
Brand equity is the value that a business generates from the sale ofselling a recognizable product or service in the market compared to its equivalent. Forever 21 can create brand equity by making its products superior in reliability and quality, easily recognizable, and memorable by customers. The techniques of building brand equity may include: First, creating brand identity through brand awareness. Fortune 21 should begin with brand awareness as the first step in building brand equity (Keller & Brexendorf, 2019). Second, communicating to the customers what the brand offers, and the customers’ needs it satisfies. Third, reshaping customers’ thoughts and feelings about the product through relevance, credibility, and quality. Lastly, creating a deeper relationship with customers through online chats or brand ambassadors.
Forever 21 can differentiate its products using brand elements such as quality and reliability, unique designs, faster customer support, unique features and functionalities, product customization, and the pricing model. Product differentiation allows products to stand out from competitors’ products in the eyes of the customer. Forever 21’s brand promise is to provide its customers with trendy, latest, and new fashion at an affordable price (Forever 21, 2020). The company has created its brand equity by offering designer clothes at an affordable price, a variety of styles for men, women, and children in the same shop, and creation of awareness through various strategies such as magazines, billboards, and television. Comment by Lorna DeShay: You have your responses under the incorrect questions.
Q4. Explain the product’s current life cycle stage (introduction, growth, maturity, or decline). Select one stage to discuss and omit the others). (Ch. 12)
Forever 21 is a niche in the apparel industry. The Company has specialized its products to a specific market segment, where it targets young men and women, as well as children. Forever 21 has tailored its marketing mix to the needs of young people by offering trendy and the latest fashions. However, although most products in this market classification adopt a premium pricing strategy, Forever 21 has adopted a low-pricing strategy to capture the market. Nike is the Apparel industry’s market leader in the world. Forever 21 has had some strengths that have given it an advantage over its competitors and weaknesses that need improvement. The strengths include First, the ability to stay trendy, providing the newest trends to its customers, which has positioned the fashion retailer as a trendsetter for several years. Second, innovation has allowed customers to find new trends every day and has been the favorite shop among teens. Third, the ability to offer affordable prices for quality designs. Lastly, the brand’s customer-friendly nature has earned it a positive reputation among its customers. Comment by Lorna DeShay: Nike is in the same category as Forever 21? Who is the leader based on the Forever 21 target? Comment by Lorna DeShay: The strengths and weaknesses are of the leader
The weaknesses of Forever 21 include: First, the fashion retailer is family-owned by the Mister and Mistress Chang which who has limited its reach on society. The company’s worth is estimated to be more than $4 billion and remains under private ownership (Maheshwari, 2019). Second, the company’s decision-making is centralized since it is family family-owned. There is a limited contribution to other stakeholders of the company. Lastly, Mature adults have hesitated in associating themselves with the Forever 21 products because the company has excessively focused on teens which who have affected its popularity among mature adults.
Forever 21 current life cycle stage of its products is on the decline. The company filed for bankruptcy protection due to a decline decrease in sales and announced that it will shut down about 350 stores in 40 countries around the world (Maheshwari, 2019). Forever 21 was the fastest-growing retailer in the United States fashion market and a global trendsetter. In 2015, the company attained its peak sales making revenues of up to $4.4 billion (Maheshwari, 2019). Although the company did extremely exceptionally well in the American market, the fashion retailer’s rapid expansion into the international market affected its ability to offer customers its brand promise. The rapid expansion affected the retailer’s ability to provide the latest styles to shoppers. Comment by Lorna DeShay: This section has responses of two different questions
Q5. Is the product classified as a convenience, shopping, specialty, or unsought good? Select one type and omit others. (Ch. 13)
Forever 21 products can be classified as shopping goods. Shopping goods are purchased after more planning and thoughts as opposed to convenience goods which do not require much effort to make a purchase. The products are expensive, durable, have a longer lifespan when compared with convenience goods. Consumers of Forever 21 products mostly make occasional purchases and make comparisons with competitor products before purchasing. They look for features such as cost, quality, value, price, price specifications, and the appropriateness of the product in meeting the needs of the customers. Consumers make comparisons with other products to gain some satisfaction. Forever 21 has differentiated its products to attract customers by targeting the young adults and children market segments, and a low-pricing strategy.
References
Forever 21. (2019, December 17). https://www.forbes.com/companies/forever-21/#3f56b61b365f
Forever 21. (2020). About Us. https://www.forever21.com/us/shop/info/aboutus
Keller, K. L., & Brexendorf, T. O. (2019). Measuring brand equity. In Handbuch Markenführung (pp. 1409-1439). Springer Gabler, Wiesbaden. http://doi-org-443.webvpn.fjmu.edu.cn/10.1007/978-3-658-13342-9_72
Maheshwari, S. (2019, September 19). Forever 21 bankruptcy signals a change in consumer’s tastes. The New York Times.