Sainsbury’ s requires a 25 percent increase in sales in order to offset the high costs of a fast-fashion, in-store replenishment, and design model. Accomplishing this objective would take the current sales of £ 680 million to £ 850 million. Tu is currently available in 400 of the 600 stores that Sainsbury’ s operates (The Guardian 2012). This provides ample opportunities for expanding distribution and in-store replenishment across the entire United Kingdom and, coupled with effective promotions, the 25 percent increase is feasible and realistic by expanding the availability of the product. By December 2014, Tu can be providing nearly £ 1 billion in revenues.
The company does not require new product development in order to gain consumer attention and brand preference, as the existing styles as shown by Figure 1 are parallel to major fashion companies such as Zara; contemporary and hip. Figure 1 illustrates the aspirational models used to promote the Tu brand, however, this is not effectively accomplished through lifestyle marketing and promotion, this Sainsbury’ s is missing out on ample opportunities to appeal to an aspirational peer network. The current replenishment model has a six week lead time, making the company able to actively compete with Zara and other fast fashion competitive models.
Consequently, the Tu clothing line is able to provide new and exclusive fashions under the current business model and does not require a redevelopment of relevant fashion merchandise. The concept of consumers utilizing fashion merchandise to build a unique identity and express their social superiority is known as status consumption (O’ Cass and McEwen 2004). When consumers believe that a brand is able to improve their lifestyle and expand on their social status in society, they are more likely to build long-lasting brand attachments.
The Tu clothing line requires a premium brand positioning, a segment categorized below luxury brands (Hameide 2011). Premium brands are also considered aspirational brands.
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