Analysis of Jack Wills Marketing Strategies and Recommendations

Analysis of Jack Wills Marketing Strategies and Recommendations[Type the date]

Analysis of Jack Wills Marketing Strategies and Recommendations

Executive Summary

Jack Wills is a mid-range British clothing brand aimed at university students. Easily recognized by its iconic Pink and Navy stripes and the Fabulously British title, the inspiration behind the brand is clear and obvious to offer British heritage- inspired goods. Jack Wills is aggressive in executing its expansion plan. Within 2 years, 3 stores have been opened in the Hong Kong district. The rapid expansion not only proved the companys strong foothold, but also its rocketing popularity within the Asia Pacific Region. However, at the meanwhile, threatened by the intrusion of other foreign labels, like Abercrombie & Fitch and Hollister, Jack Wills is facing a more fierce competition. In order to stand out above the rest, it is necessary for Jack Wills to differentiate itself from its competitors while maintaining its strengths.This report explores the current marketing strategies of Jack Wills. The objective of this report is to investigate the companys unconventional marketing tactics through an in-depth internal and external marketing analysis, which focuses on four major perspectives: target market, market trend, 4Ps model and SWOT analysis. Based on these four perspectives, it is seen that the current marketing strategies lack foresight as tactics fail to adapt to the changing trend and customer groups. We recommend Jack Wills to introduce strategic changes and maintain its comparative advantage to cope with the current loopholes, such as negligence of the potential customers and lack of advertisement.

Acknowledgement

We would like to take this opportunity to express profound gratitude and deep regards to Mrs. Catherine Gillies, the Hong Kong based Brand Marketing Executive of Jack Wills for her cordial support, valuable time and information, which helped us in conducting an in-depth analysisTable of Content1Executive Summary

Acknowledgement11. Introduction31.1 Background of Jack Wills31.2 Preview of the Scope and structure of the report32. Methodology43. Analysis of Jack Wills current marketing strategies5 3.1 Overview of current strategies5 3.2 Target Market6 3.3 Market Trend7 3.3.1Growth of Online Shopping7 3.3.2Clothes represent status8 3.3.3Rise of mini fashionistas celebrities9 3.4 The 4Ps Model10 3.4.1Product10 3.4.2Price10 3.4.3Promotion12 3.4.4Place13 3.5 SWOT Analysis14 3.5.1 SWOT14 3.5.2 Interpretation of SWOT154. Conclusion155. Recommendations15Appendix 120Appendix 220References21

1. Introduction

1.1 Background of Jack Wills

Jack Wills is a premium British clothing label mainly targeted at university students. Founded by Peter Williams and Robert Shaw in 1999, it has always aimed at reflecting the UKs rich heritage and style through its fabulously British, authentic but relevant university outfitters. Currently, Jack Wills has a chain of 78 stores, serving 5 different areas, namely the UK, Ireland, USA, Hong Kong and Kuwait.Though being well known as a fashion brand, the company offers a wide variety of products, ranging from clothing to home wares like stationery, fragrances and furnishings. Unlike other fashion labels, Jack Wills does not use a conventional advertisement model, instead thriving on word of mouth and viral marketing. Such distinct approach is tailored to the lifestyle brand as marketing strategies are implemented at a personal level. Take the Seasonnaires programme as an example, it allows the company to reach out each customer, which fosters customer retention and loyalty.1.2 Preview of the Scope and structure of the reportThis report examines the marketing strategies implemented by Jack Wills from different perspectives and provides recommendations based on the current loopholes.

In the first place, an analysis of the current company situation is conducted using the 4Ps model (Product, Price, Promotion, Place). The marketing mix model is applied to see whether the company is selling the right products at the right place with the right price and using the suitable promotions.

A SWOT analysis is also carried out to evaluate Jack Wills strengths, weaknesses, opportunities and threats, for the sake of developing a more structured future marketing plan.

It is undeniable that the report contains several limitations, even it tries to look into the issue from different angles. Inability to access private information, e.g. marketing budget leads to an unsatisfactory evaluation, since the report fails to compare the economic efficiency of conventional and unconventional marketing strategies. Together with a partial interview and a survey of small sample size, which provides standard, official answers and unrepresentative data respectively, the report tends to be of low creditability and acknowledgement.2. Methodology

In order to facilitate the marketing analysis of Jack Wills, 3 main methods are used to gather relevant information.To begin with, knowledge on companys background, marketing activities and price ranges are searched on the Internet, mainly from the official Jack Wills website.

Since in- depth information cannot be collected online, we conducted an interview with the marketing director of Jack Wills. This fosters our analysis as it offers intimate knowledge on not only the details of the marketing strategies itself, but also the rationale and difficulties encountered when they are put into practice.

Customers from vary age groups are also surveyed for a comprehensive appraise of Jack Wills marketing effort. The study is to show the effectiveness of the current plan within each age group, which helps us to give recommendations concerning its defects.3. Analysis of Jack Wills current marketing strategies3.1 Overview of current strategies

* Jack Wills stick by its 5 core values: British, Entrepreneurial, Innovative, Responsible and Excellence.3.2 Target MarketJack Wills has a well- defined target market. The title, University Outfitters, has made its target group clear. The brand aims at young people who are mainly university students aging from 18 to 25. Jack Wills has positioned itself as a preppy, classy and cool lifestyle brand. The brand is known for its iconic navy and pink colors and fine goods, but one should not neglect the fact that its brand culture is in fact the brands most valuable asset. By linking the brand with popular sports events like Varsity Polo and Ruby Sevens, hosting parties and university tours for undergraduates, as well as pioneering on the Seasonnaires Programme, Jack Wills has captivated the audience by its fun- loving, cool brand culture. Its remarkable success among the teens is undeniable. However, Jack Wills has ignored another important customer group, which refers to middle income group at their thirties or forties. Take Jack Wills Hong Kong as an example, more than 50% of the customers aged 30 years old or above and more importantly, they take up around 60% of the total number of VIPs.These statistics indicate that adults at the prime of their lives are potential buyers with high purchasing power. Regarding the current strategies, it is certain that such group is not catered for, since they focus on promotion among the young age group only. 3.3 Market Trend

Market trends are of vital importance. They offer insights for the marketing department to design the most effective and suitable marketing plans that are tailor-made to its companies.

With regards to the clothing industry, 3 major market trends are noted:

3.3.1 Growth of Online ShoppingOnline shopping continues to thrive with e-commerce sales predicted to reach $963 billion globally by 2013, with an annual growth rate of 19.4%. Apart from bringing convenience to customers, the trend of online shopping also offers a vast potential international market for brands, as trades are no longer confined by borderlines. Currently, Jack Wills offer online shopping and delivery service to different parts of the world. Yet, free standard delivery service only applies to UK orders. On the other hand, it is noted that the company takes online orders from the official site only, while its major competitor, Abercrombie & Fitch, allows online orders through both mobile app and official site. B2C e-commerce sales have been on the rise and become one of the most important distribution channels nowadays (Appendix 1). While Clothing, accounted for 61%, has been proved as the most frequently purchased category (Appendix 2), Jack Wills current marketing strategies are not comprehensive enough to make good use of its advantages and sustain its dominance.3.3.2 Clothes represent statusTeenagers always perceive dressing cool and popularity as highly correlated. According to a study, teens in the surveyed countries perceive fashionable clothing as a key to social status. In other words, people at their young age resort to fashion and style in pursuit of a high- powered status. Throughout the years, Jack Wills has successfully built up a large customer base. Being widely recognized as an upmarket clothing brand for college students with a confident and oozing effortless style, it shows that Jack Wills somehow symbolizes classy and cool. Granted with another advantage, which is the rise of fashion spending among upper income teens, it is believed that Jack Wills can further maximize the young market by implementing strategies that are more coherent with todays trend. 3.3.3 Rise of mini fashionistas celebritiesA research commissioned by Sheilas Wheels home insurance, which polled parents with school- age children in the UK, found that the average cost of a childs wardrobe reached 1,677 with almost two thirds (62%)of the children owning at least one item of designer label clothing.

Influenced by the rise of mini fashionistas celebrities such as Suri Cruise and Romeo Beckham, children are more picky about what to wear and parents are more willing to spend on expensive children. As stated in the research, approximately a third of parents (31%) claimed that their kids turned their noses up at wearing hand-me-downs, whilst over a quarter of parents (26%) admitted feeling guilty if they did not buy their children the latest fashion clothing7.Despite the pervasion of such unhealthy trend, Jack Wills should make the most of the unexplored but promising childrens market and develop itself as a lifestyle brand that cater the needs of customers from various age groups. 3.4 The 4Ps Model3.4.1 Product

As their slogan states Fabulously British, Jack Wills values heavily on clothing that are inspired by the British heritage. Their aim is to provide clothes with finest quality materials, techniques and designs to deliver their distinctive connection between the old and the new. Therefore, it is common to see collaborations between Jack Wills and some long- established traditional British brands such as Cordings, Fox Brothers, Liberty and Johnstons.

Jack Wills products ranges from traditional British formal wear such as shirts and blazers to a more contemporary casual clothing such as hoodies and polo shirts. Besides clothing, Jack Wills also offer peripheral products such as accessories, swim wears, shoes, bags and fragrance. Jack Wills clearly aims to achieve innovation by providing a wide range of products.

However, Jack Wills main competitor, Abercrombie and Fitch provides the same product range and offers more designs compared to that of Jack Wills. A method to differentiate and directly compete with A&F would be to put more effort in selling their brand image. In fact, Jack Wills uses their unique logo (peasant with a top hat and a walking stick), the word Jack Wills or their signature colors (pink and navy blue stripes) on majority of their products. According to our survey results, 88% of the respondents claimed that their first impression of Jack Wills was their pink and navy blue stripes, suggesting Jack Wills was effective in terms of selling their brand image. 3.4.2 Price

Setting the right price for a product is vital since it sends a strong message to the market. In order to achieve this, the price needs to be consistent with the value that the company is delivering to the customers. In the case of Jack Wills, their value proposition is product leadership because their vision is to provide high-quality clothing that is British inspired. However, for majority of the customers, price becomes their first impression of a product, and if the company fails to offer the right price, it is possible the customer may refuse to evaluate the product based on price alone.

Figure 1.1 illustrates the different prices of some of the popular products offered by Jack Wills. All of the clothing are priced over HKD$200 with the highest price of HKD$896.98, which is clearly a high price comparing to other clothes sold in Hong Kong. On top of this, Jack Wills doesnt provide any sales or discounts to customers in order to maintain its luxurious brand image. This becomes a disadvantage for Jack Wills whose target audience is university students with low incomes. In fact, 38% of the recommendations from our survey mentioned that Jack Wills products were overpriced and needed price cuts to match the financial needs of the university students. Figure 1.1 Price lists of Jack WillsProductPrice range (HKD$)*Average Price**

Dress395.87 896.98646.43

Jeans496.09 596.31510.43

Hoodies596.31596.31

T-shirt/Short-sleeve (excluding tank tops and long shirts)245.54 596.31266.19

* Price information obtained from Jack Wills official website (www.jackwills.com)* Price converted from Euro () to HKD ($) using HSBC currency calculator** Average obtained from sum of all prices divided by the number of productsFigure 1.2 Price lists of Abercrombie&FitchProductPrice range (HKD$) *Average Price **

Dress710 - 820723.46

Jeans710 1,370816.88

Hoodies620620

T-shirt/Short-sleeve270 - 640314.21

* Price information obtained from Abercrombie&Fitch official website (hk.abercrombie.com)** Average obtained from sum of all prices divided by the number of productsDespite the high price of Jack Wills products, when comparing it with biggest competitor Abercrombie&Fitch, the story becomes different. After comparing the average prices of the two brands (Figure 1.1 & 1.2), Abercrombie&Fitch clearly exceeds Jack Wills. From this point of view, it can be said that Jack Wills has an advantage over Abercrombie&Fitch when it comes to pricing. 3.4.3 Promotion

Promotion is vital to a company as it has great impact on a companys image and popularity. It is more than providing information about products to different parties, more importantly, it is about how to position your brand and make it big.

Jack Wills, easily recognized by its iconic navy and pink stripes, has a very distinctive fabulously British, classy and fun brand image, which can be reflected by its unconventional promotional channels.

Unlike other clothing retailers, Jack Wills take a more innovative and bold approach to convey the companys messages. In order to reach out to every customer, the brand fully utilize the social media, such as Facebook, Twitter, Instagram and Weibo, which allows immediate feedbacks and interactive communications at a personal level. Together with the pioneering Seasonnaires programme, it further brings an ordinary clothing brand into a living brand. Seasonnaires, regarded as brand ambassadors, dress in Jack Wills outfits, tour everywhere (especially across universities) and share their fabulous lives in Jack Wills. They get into the crowd and inspire people around them to join them and love the Jack Wills culture, rather than stress on promoting the products. For example, they hold university live band tours and tea party, which teens can never get enough of. They believe that such approach is more efficacious as it adheres to the fun- loving Jack Wills culture. 3.4.4 PlaceThis P of the matrix refers to providing product at a place, which is convenient for customer to undergo any purchasing. It is believed that with the rise of Internet and hybrid models of shopping, place is becoming less relevant. Yet, for a brand like Jack Wills, to create a convenient and memorable shopping experience is crucial. That is, location is still a major element one should not overlook.

Jack Wills has primarily adopted a selective distribution strategy, which only a few retail outlets cover a specific geographical area. For instance, large areas like Ireland and Wales are both served by 2 stores only. However with regards to Hong Kong district, the first- served area within the Asia- Pacific market, the company is more aggressive, as 3 stores were established to serve the small city. Comparing with the 49 stores in UK, it is seen than both accessibility and density in Hong Kong are higher. Stores in Hong Kong (Leighton Centre Causeway Bay, LCX Tsim Sha Tsui and Festival Walk Kowloon Tong), are all linked by various means of transport network, together with a high pedestrian flow of varying age groups. This allows the brand to explore different markets, for instance, LCX targets at tourists while Festival Walk targets at students from the surrounding school network. Since Hong Kong serves as the step stone to test its potential market in Asia, the 3 stores are located at the perfect districts. It serves the purpose of catering the Hong Kong local market and tourists worldwide. 3.5 SWOT Analysis

3.5.1 SWOT*Popular boy band One Direction from United Kingdom wears Jack Wills very often while facing the press, and this provides free advertisement for Jack Wills to the teenagers.**According to information collected from an interview with the Brand Marketing Executive of Jack Wills.***Teens spending on fashion increased from to 38% of their budget on fashion in 2013. Besides, the spending on fashion of teenagers doubled from 2002 to $170 billion in 2012. **** In March 2012, UK retail websites received an additional 8.5 million visits through social networks and forums compared to March 2011, representing a 2.3% increase year-on-year.3.5.2 Interpretation of SWOT

From the above internal and external analysis, we pinpointed some major problems, like negligence of the potential customers and lack of advertisement. In order to make Jack Wills a more successful brand, we advise the company to embrace its opportunities, such as fully utilize social media and target potential customer groups, whilst maintaining its strengths. It is expected that by seizing the market opportunities, the clothing brand will be able to tackle its threats and maintain a strong foothold in the industry.

4. Conclusion

The report conducts a thorough internal and external analysis of Jack Wills marketing strategies. In a nutshell, the current strategies are well implemented but lack foresight. As long as the brand can get rid of its rigid conceptions and make changes, effective tactics can be applied to serve the more diversified customers and ever-changing market trend. 5. Recommendations

Place advertisement through mass medium Currently, Jack Wills refuses to place advertisement, as they want to maintain a lifestyle brand image. However, advertisements are undoubtedly important in raising a brands recognition. Thus, to have it in both ways, we suggest placing advertisement in 2 major media, with each target a particular customer group. For teens, we suggest placing advertisements on social network like Facebook and Twitter, which has been proved to positively influence ones purchasing behavior. For potential customers, who are mainly middle class working adults, we advise placing advertisement on high-class popular magazines like TIME Magazine. This serves both functions: to promote the brand and maintain a luxury lifestyle brand image. Improve online shopping services( Mobile app Smartphones and tablets have become a vital part of ones everyday life and apps for all platforms are growing. Data has also proved that the number of mobile shoppers has rocketed. Therefore, instead of only creating a handbook app for US and UK, the brand should create an international accessible free shopping application for customers worldwide. ( Free Shipping Free standard delivery should not confine to UK only. Though its impossible to offer free shipping to every single order due to high cost, Jack Wills should offer free standard shipping to patrons outside UK whenever they spend a certain amount e.g. 100. This helps in capturing potential markets like China and Thailand where stores are nowhere to be found.( In- store pick up Online shoppers seek a convenient, easy and quick shopping experience. Since delivery usually takes at least a week, we advise Jack Wills to implement in-store pick up for orders placed online. This benefits both parties as customers can avoid making a futile trip if the wanted item is out of stock, while stores can avoid costly administration work on customer reserve and stock transference. Launch limited edition products Limited edition products always attract customers, especially teenagers, because they represent prestige, distinction and status. Given a large group of loyal teenage customers, we recommend Jack Wills to launch limited edition products occasionally in different areas. Apart from boosting sales, it is also expected to raise brand awareness. Launch product lines for kids

In order to extend the target audience to a wider range of age groups, Jack Wills should first aim to cater children designer clothing. Abercrombie & Fitch has already achieved this by creating a section named Abercrombie Kids which is targeted for consumers aged 7-14 offering childrens sized casual wear. They have already made their products online through a separate website (www.abercrombiekids.com) to allow easier access for online consumers. Therefore it is recommended for Jack Wills to also adopt the childrens wear products strategy in order to increase their opportunity to sell more of their products and capture the current fashion trend. Create brand experience

By offering a wide variety of unique (navy and pink stripes) and fine products, Jack Wills has successfully built a name in the clothing industry and developed a large customer base. Thus, instead of focusing on the products itself, we suggest creating a favorable brand experience for customers as a way to foster customer loyalty. A. Aged 18- 25: Promote Jack Wills fun- loving culture( Sponsor local big eventsTeenagers usually engage in extra- curricular activities. By linking the brand to different popular and positive events, it is expected that Jack Wills fun- loving, extroverted culture can deep- rooted among young people. Outside Hong Kong, Jack Wills sponsor the Varsity Polo, which is a well- known popular sports event among university students. In order to blend into the local culture, the brand is suggested to sponsor big events in HK Universities, like University teams, Joint- University Mass Dance Competition and singing contests. Introducing the British sports like Polo to Hong Kong is also recommended as it serves the function of promoting the fabulously British culture. ( Jack Wills Club

Apart from the Seasonnaires programme, Jack Wills could establish a Jack Wills Club, which welcomes any university students that are interested in the organized activities. The club serves as a platform for students to build a social network by holding activities regularly. Joined members hang out, do sports and have fun with the Jack Wills Seasonairres, for instance they hold beach parties, football games, polo games, running events or even sky-diving once a week or month in different seasons throughout the year. During each event there will be cameramen taking photos and videos, which will then be uploaded onto the official site and social media like Facebook and Twitter.B. Aged 30 or above: Improve customer service( Offer styling service

We propose an entirely new service to Jack Wills, which is known as the styling service. Whenever customers have difficulties in choosing what to wear for any dates or events, the Jack Wills crew transforms into stylists and work out a suitable and decent look for them from head to toe. In other words, the staff recommends an appropriate outfit, put on makeup for them with the help of Jack Wills clothing and cosmetics. This new service breaks the rules of the conventional retailing industry as it offers products and service at the meanwhile. In addition, the suggested service aims to build a personal and intimate relationship between customers and the brand, along with promoting the Jack Wills products.Promotional pricingBecause majority of the consumers perceive Jack Wills products to be overpriced, it is recommended that Jack Wills implements a promotional pricing strategy aimed at different age groups.A. Aged 18- 25: Enjoy a good deal with fun( Snap shot competition

With the rise of photo- sharing apps, like Instagram, a snapshot competition should be able to attract active participation. It is that a person takes a picture of themselves wearing Jack Wills products and the winner is awarded with a favorable discount. This is expected to create noise and allow Jack Wills lovers to showcase their creativity and talents, while enjoying a good deal. ( Terms Begin Promotion

Targeting at students, Jack Wills should provide promotions during the beginning of each term for students who are looking for new clothes for a new beginning. This enables students to start a fresh academic year with an enlightening attitude.B. Aged 30 or above: Down-to-earth( VIP Programme

Jack Wills current VIP programme gives out goodie bags to regular customers seasonally. Therefore, in order to cater the more down-to-earth middle age customers, we suggest the company to approach a practical method such as providing discounts for newly admitted VIP members or providing cash coupons to encourage customers to buy more of their products. If Jack Wills put more effort in adjusting their price and its promotional strategies, then it will definitely gain opportunities to boost their sales.Appendix 1

Source: eMarketer, Jan 2013Appendix 2

Source: Pitney Bowes, 2012References

Jack Wills. (n.d.) About Jack Wills. Retrieved April 10th 2013 from: Jack Wills

http://www.jackwills.com/en-gb/about/about-us/about-jack-wills/Abercrombie & Fitch. (n.d.) Price information. Retrieved April 10th 2013 from: Abercrombie & Fitch http://hk.abercrombie.com/webapp/wcs/stores/servlet/StoreView?catalogId=10901&langId=-1&storeId=15108

Bronson, P & Merryman, A. (2009, Nov 11). Why Teens Care So Much About Clothes. Newsweek- The Daily Beast. Retrieved from: http://www.thedailybeast.com/newsweek/blogs/nurture-shock/2009/11/11/why-teens-care-so-much-about-clothes.htmlEmerson, L. (2012, Apr 11). Spending rises among upper-income teens:Affluent lead the way in return to stores. The August Chronicle. Retrieved from: http://chronicle.augusta.com/news/business/2012-04-13/spending-rises-among-upper-income-teensEcommerce Sales Topped $1 Trillion for First Time in 2012 (n.d.) In eMarketer. Retrieved April 10th 2013 from: http://www.emarketer.com/Article/Ecommerce-Sales-Topped-1-Trillion-First-Time-2012/1009649Pitney Bowes (2012). Consumer trends in online shopping and shipping: What todays cosumers in the US and Europe are buying online and how businesses can position themselves to capture this international market. Retrieved from: http://webcache.googleusercontent.com/search?q=cache:IDjh8ri84r0J:news.pb.com/white-papers/consumer-trends-in-online-shoppingStossel, J. (Dec 12). Teen Spending on the Rise. Abc News. Retrieved from: http://abcnews.go.com/2020/story?id=124346&page=1#.UYHrrqmQyLtLittle Mini Fashionistas (n.d.) In Sheilas Wheels. Retrieved April 11th 2013 from: http://www.sheilaswheels.com/media/news/LITTLE_MISS_FASHIONISTA.htmlIn-Store UK Consumers Use Mobile to Shop Around (n.d.) In eMarketer. Retrieved April 10th 2013 from: http://www.emarketer.com/Article/In-Store-UK-Consumers-Use-Mobile-Shop-Around/1009789#RrIrHGHUZIYOYqj1.99Analysis of Jack Wills Marketing Strategies and Recommendations

Group members:

Wong Hoi Ming Amanda 3035052715

Choy Hong In Connie 2012517952

Chiu Ho Ting Edwin 3035048817Lee Joo Youn Susie 2012548169

Mak Ho Yin 3035050470

Figure 1 Top 5 Countries, Ranked by B2C Ecommerce Sales, 2011-2013

Figure 2 Online Purchasing Patterns in the 4 Surveyed Countries, 2012

Data obtained from the Jack Wills Hong Kong Brand Marketing Executive

Goldman Sachs in JP Morgans annual Nothing But Net: 2011 Internet Investment Guide on

digital commerce

Areas covered: UK, Europe, US, Canada, Australia, New Zealand, China, HK, Japan,

Philippines, Singapore, Taiwan, Thailand, Kuwait, U.A.E

European / International Service (10-14 working days) (12.00)

A study by Antonius Cillessen and Eddy de Bruyn, targeting teens in Netherlands, Canada,

Germany, New Zealand and Pakistan

Among upper-income teens, fashion spending accounted for 38 percent of their budgets, up one percent from spring 2011.

Sheilas Wheels used the independent online research company Fly Research who surveyed 1,039 parents with children aged between 4-17 from 24 June and 27 June 2011.

A recent poll conducted by Experian showed that 24% of people would be positively influenced to buy a product after seeing an advert on Facebook.

According to HYPERLINK "http://www.foresee.com/" ForeSee, citing Mobify, the number of purchases made via smartphones and tablets tripled over the course of the year.

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