Topshop is a retail company that focuses on women’s clothes. It has been present for many decades, and has expanded into avenues of accessories and other complementary goods in order to diversify its portfolio. While the essay writer company continues to exercise a strong market hold, it is being affected by the rising markets of online shopping and the increased competition from other brands.
The major objectives to be addressed are the competitive strategy of the company, the customer engagement, and the brand awareness that should be further supplemented. These objectives would be noted in the effort of Topshop to remain relevant to a growing customer area and maintain such through a diversified portfolio. The inherent driving force that makes the company embrace its target market involves the utilization of modern-day strategies to give justice to the modern woman. This perception is a critical perspective that would be inherent in the cognition of contributing much to an image of virtue and a focus that would initiative continuous processing.
Topshop must also take a proactive stance in addressing the increased competitive nature of the online shopping mechanism. Hence, it should apply marketing communication as an important programme that can be noted in the overall improved of service that the company may provide its consumers. Online marketing is an avenue that is reaching a stable position in the global perspective. If a company would not maintain an online presence, it is bound to fail. Topshop has been facing issues of the retail stores being affected, so it has taken the initial steps by being inventive. However, true success can be attained through taking the perspective on continuous improvement through the support mechanism of the communication being supplemented as a focused strategy.
These perceptions in mind have been integral in defining the inherent context of improving market viability and ensuring a more focused approach in the scheme of the message being driven for Topshop’s business future. It is thus essential to look at these insights from a proactive manner to project even more long-term improvements to the company’s outlook.
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Analysis of the External Environment
Topshop has been regarded as one of the long-time clothing store chains that started in the U.K. It was noted as a company that is based on providing young women with fashion, clothes, and accessories (Bornlow, Zaki, Neely, and Urmetzer, 2015). Changing times have resulted in various outcomes in the company, especially in terms of the macro-environment. It is important to look at these considerations in order to draw insights that can be useful in determining the outcome and projected consumer behavior that can influence sales. It is this criticality that can provide a vital insight in what would make the company thrive in a competitive environment. The external environment would focus on the design of how various market inputs would influence the externalities of action that would result in better improvement for the company.
The concern for customer input has always been a major contention in the continuity of how a company would work. This is drawn by the generation concern that is involved in the process of the target customer involved. According to Fernández Hidalgo, Mikano, and Vermeersch (2016), one critical issue about the external aspect is the customers, which can be noted by the generation difference framework. This framework notes that the purchasing behavior is inherently noted among generations X and Y as critical customers, wherein the generation Y consumers have been focused on purchasing brands that would be designated to give them emotional support. This goes to show a direction for retailers to adapt and adjust to the behavior that would require attention being given.
The competitive aspect of a company is a major externality that should be further noted when improvement is to be sought. This would involve the condition of competitive advantage being drawn and the inherent value that is to be noted. Another instance that Topshop has to continually present itself as a competitive company involves adapting to new trends and focusing on innovative techniques of marketing. Moreira, Nordström, and Ortega (2017) presented the situation in which virtual-reality immersion was one of the strategies that Topshop had to employ in order to promote fashion in a fast-paced sense. This is in response to the competitive edge of other companies looking at the innovation element of improving overall conduct of the business. The focus of branding is emphasized through the integration of this social aspect in establishing continuous commitment to the community and a driven force that would ensure focused stability in the ideas at hand. The concept of activating the brand into a more modern perspective is an essential strategy that must be critically noted.
Brand management has always been a major concern for apparel companies like Topshop. Branding is the means in which a company would convey its image and its presentation (Claire and Uddin, 2019). This gives perspective to the target market and it also defines the integrity of the company at hand. Moreira, Nordström, and Ortega (2017) also presented another issue that Topshop faces, which involves brand awareness. The situation that the company faces involves addressing the relevance of the brand through the innovative effort that is being put in place. Many brands have risen through the recent decade because of the streamlining of production and the increased value that people put on fashion (Clare and Uddin, 2019). Hence, it is in the interest of the company to be able to establish initiatives in order to expand branding through the inventiveness of trying to lock in new generation consumers and maintain the consumers who have been loyal to the brand.
The brand is one concern for the external functionality of the company, but the inherent nature of the number of stores can tell a lot about how well a company is performing (Chan, Ngai, and Moon, 2017). Berman (2019) also noted the issue that Topshop has been facing, which involves the death of retail stores. Topshop has been part of the many stores that would be affected by the lack of consumers because of the advent of online shopping. While Topshop has been engaging in measures to improve the performance of its retail stores, the current trend has been focused on moving toward online. Wu and Ke (2015) attributed this behavior to the online shopping behavior model which focuses on the increased need for influence as a mechanism to ensure online shopping means would be improved. The decline of retail stores should be addressed accordingly with the perspective that is entailed, particularly in looking at the landscape of demand and the market viability of these stores.
Topshop’s external environment can be better assessed through the PESTEL model, which would focus on political, economic, social, technological, environmental, and legal influences. In terms of political, what would affect the extensive impact of Topshop involves the Brexit situation, wherein the legal and trading standards would be compromised in the process. This would affect the economic outcome of the company because of the need to adapt to changing standards (Chan, Ngai, and Moon, 2017). The social aspect of the external environment of Topshop would be focused on the movement toward online shopping. As noted by Berman (2019), people have moved from brick-and-mortar stores to online means in getting their clothes, so Topshop would have to adjust. This is in congruence with the streamlining of technology in the aspect of integrating mobile applications in the service that Topshop provides. The environmental consideration would also be noted in how the fashion industry is moving toward sustainable action, wherein manufacturing and the distribution would be affected by the practice of maintaining proactive actions (Henninger, Alevizou, and Oates, 2016). The legal aspect of Topshop is in line with the political landscape which may affect licensing and other issues if Brexit were to be evident, with Topshop being a U.K.-based company.
Analysis of the Internal Environment
The internal structure of Topshop is oriented on being inventive for the needs of customers through a more proactive approach in how fashion is designed and distributed. As presented by Vesey (2018), the essence of feminism is noted in the environment that is being upheld by Topshop. This kind of thinking is focused on the drive to enhance the overall practice that is instituted in ensuring continuous growth and stability of the company. The internal environment would thus benefit from this enhanced treatment among its personnel, especially in the effort to promote an equality-based environment.
Another effort of Topshop to maintain a strong focus on its store experiences involves the use of multimedia engagement, especially in the complimentary experiences channeled with the audio and visual perspective that is strengthened through engagement of intricate perspective and the need to maintain relevant (Vecchi, 2017). This mindset is important because of its core structure in projecting the inventiveness that would be used to address the change in the market and the inherent outcome that is to be promoted. With this in mind, it is essential to look at the premise of such conduct and the realization of the action involved in the process. The dynamic of Topshop is focused on being style-relevant and conscious about the needs of the consumer. Hence, the strength of the company is in being innovative in such effort. The company would always drive its attention using new technologies to improve the structure of the company in a competitive world. The drawback is the emphasis on retail stores has been harmful to the company’s overall bottom line. This kind of problem is detrimental on the outcome and problematic on the contention of what needs to be done in addressing the changing global environment. Hence, the right actions should be addressed and presented with reference to how the company can seek an improved outcome in terms of strategic marketing.
From an overall perspective, Porter’s value chain model is useful in explaining the responsive nature of Topshop to the needs of the company. As stipulated by Mohajeri et al. (2014), the value chain of the apparel industry, such as in the case of Topshop, depends on the ultimate goal of the company. This is noted through the fragmented perspective in terms of production and the overall finishing that is undergone. One important consideration would be the diversified portfolio of the company’s products, especially in providing aspects such as women’s accessories. Diverse measures would likewise promote expansion of the company, but there is a risk to such action, such as a loose supply chain that must be addressed. Hence, in order to streamline the value chain, it is important to determine the kind of consumer response involved so that the adjustments to the primary activities can be done accordingly. The internal environment of Topshop has been aligned with the measure of meeting the needs of consumers, particularly women, in terms of their fashion needs through low-cost apparel that would be responsive to the latest trends.
Internal environments involve a focus that would be oriented toward how the company delivers. The supply chain is an inherent part of the process, particularly in the assertion of what needs to be done in order to deliver what is due to the consumer. In order to further address the integration of the external and internal environments, the critical lens must be projected through issues and objectives. Not only will such delineation provide a more focused approach in determining the strategic aspects to tackle, but it would also institute a more direct aspect so that further improvement may be done by the company. This kind of perspective would be enhanced through analyzing the issues and objective involved. Issues and objectives are designed around the premise of improving the company by looking and addressing the critical challenges involved in the establishing and sustaining of the overall bottom line.
Issues and Objectives
In the presentation of the external concerns that would affect Topshop, major issues have been noted with their objectives. This kind of strategic planning is important because of how it is based on a responsive mechanism that can be addressed given the resources and the commitment of the individuals involved in the company (Smilansky, 2017).
The first issue is the concern for generation gaps and preference. Topshop has been known as a company that would respond to the latest fashion and the latest trend. However, the caveat is that two distinct generations have been caught in the preference of the company to pursue the needs of the latest generation, such as Generation X. As noted by Fernández Hidalgo, Mikano, and Vermeersch (2016), the distinct need to address different generation concerns must be considered in the marketing of the company in order to retain its consumer loyalty.
The second issue is in the rising concern over competing brands seeking actions and alternatives to stay relevant in a highly competitive environment. This is noted by Chan, Ngai, and Moon (2017) when they discussed the increased and rapid manufacturing technologies streamlining mass production, which would then improve in the accessibility of products to all.
Another issue is the brand awareness aspect wherein the company must continue to drive in order to make consumers aware of the product. Topshop has been overshadowed by other competitive brands, especially ones like Zara and H&M.
Another critical issue that has affected the macro-environment of Topshop is the dwindling of retail stores. Retail stores have been suffering because of online means of shopping. People have become more enamored by innovation and the ease of online shopping that a majority of consumers has chosen this means instead of the usual retail shopping (Lim, Osman, Salahuddin, Romle, and Abdullah, 2016).
In deciding a critical marketing strategy, the most feasible involves in defining the marketing design of the company in order to address changes in the environment. Defining the needs of Topshop is a major aspect to consider, which can be summarized in one concept: the need to maintain a competitive edge. While it is noted that branding and the inherent dwindling of retail stores may pose a problem to the overall bottom line, the need for Topshop to maintain a competitive perspective would involve the utilization of strategies that would cater to the broad audience.
Wang (2016) described the importance of maintaining customer engagement in the company’s overall bottom line. Customer engagement is critical because of how the apparel industry has become even more competitive; hence, the need for innovation is high. While Topshop has been doing its best in terms of innovation, such as the use of virtual reality in order to allow customers to “feel” what they would be wearing before actually purchasing it, the actions should be improved in terms of branding and the overall reach of the company to the wider audience. This can only be done with a proactive approach being taken to tap into the online market and to spread the aspect of improving how the company manages its production and its customer loyalty (Simatupang, Piboonrungroj, and Williams, 2017). The strategic approach taken would be in the improvement of the message that the company brings. The inherent goal of Topshop to provide proactive support becomes an essential definition of progress and the viability of such action would be dependent on market structures and factors. Topshop works best in an environment that would engage in a continuously-driven foundation, which would then be vital in the creativity department and the overall concept of stability.
Addressing the issues and objectives would focus on the following contentions. For the concern of generation gaps, the objective that must be addressed would be to fine-tune the brand toward seeking a broader approach; this would mean diversifying the brand portfolio in order to establish a more cohesive line that can meet the needs of various generations.
In addressing the issue of competition, Topshop would have to deal with other brands like Zara and H&M that would have dynamic price points and strategies for improved marketing reach. Because of this, Topshop would have to innovate and focus its attention on maintaining a competitive edge in order to stay on top of the market competition. One thing is to address this issue is to present the objective of innovating in terms of market strategies and other technologies. As noted by Moreira, Nordström, and Ortega (2017), the company has employed virtual reality in its effort to maintain a new age perspective in how it delivers fashion. It focuses on more of an immersive experience designed to address the needs of consumers. Moreover, it does so in order to give something new to others what other companies may not offer. This kind of thinking is focused on addressing competition and in the focus of maintaining driven performance in enhancing the visibility of Topshop.
Brand awareness is an inherent problem that must be cultivated through a critical lens. In order to circumvent this and address the issue that is pertinent, the company must focus on increasing brand identity and establish measures to promote continuous development. As emphasized by Goworek, Perry, and Kent (2016), there is a certain level of finesse that must be achieved in order to blend design and marketing. The fashion industry continues to remain highly vigilant in terms of timeliness, so it is vital to consider these elements before instituting proactive design in the role of establishing competitive branding. The competitive edge of the market is further made complicated because of social media contributing a major portion to the potential sales of the company (Holt, 2016). Hence, Topshop should focus on its online initiative in order to stimulate better sales of its products through the advertising mechanism employed. After all, brand management stems from the inherent identification of the company in a manner that is readily noted by the public (Heding, Knudtzen, and Bjerre, 2015).
Dwindling retail stores remains a problem in terms of the marketability of the company at hand. Because of this, the sales of companies like Topshop has considerably suffered. With this in mind, it is important for the company to address this challenge by participation. Companies can no longer be left on the side while the online medium would flourish (Chen-Yu, Cho, and Kincade, 2016). They should seek initiatives in order to be part of the crowd. Hence, one critical element is to improve their marketing communication in order to address the need.
Topshop is a brand that has been present for many decades now, but is suffering from the retail disease because of online shopping. Online measures have replaced conventional shopping because of the ease, the cost-effectiveness, and the overall convenience (Sharma, Alavi, and Ahuja, 2017). People would choose a means that would allow them to optimize the time they spent shopping without lifting much. Hence, they would flock toward online medium to address their need. To convey these measures, effective marketing communication should be established, which would be explained in detail in its execution via the marketing programme.
Topshop has maintained a strong consumer base because of its attention to the needs of fashion for women. This drive has been a major stepping stone in establishing the company as a front-liner in the apparel industry. However, the times have changed and people are beginning to appreciate other competitive brands like Zara and H&M. The most proactive measure to do in order to retain its consumer base is for Topshop to invest in marketing communication as a critical strategy. Fundamentally, marketing communication is designed as a measure for improving relations among the product and the consumer trough means of advertising, sales promotion, and other actions (Finne and Grönroos, 2017). The imperative taken in promoting effective marketing would involve taking the steps toward enhancing outcomes.
Marketing communication is most sufficient for Topshop because how it would align the principles of the company with that of the need to address global trends and measures. As noted by Moreira, Nordström, and Ortega (2017), the utilization of virtual reality and brand awareness initiatives have been fundamentally designed with the consumer in mind and emphasized as such. Marketing communication would be integral in the online integration of the company in terms of adhering to a new avenue of sales. The support involved in marketing communication would be an inherent directive in promoting stable outcomes since marketing communication is a continuous process. Topshop needs to have its customer loyalty maintained and its productivity also maintained because of the dwindling condition of retail stores. Of the strategies available, marketing communication is indeed the most critical that would be sufficient in ensuring the most proactive outcomes. Marketing communication, after all, is a cognitively-driven process that would be inherently supported by the machinations and the mechanisms of the market. When marketing communication would be applied, the company would improve in terms of consumer input and an overall projection of the profitability that would be embraced.
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