Urban Outfitters Continuing Case Study 4
Marketing a Business
Introduction to Business
May 30, 2011
Marketing is a process which a company draws potential consumers/customers’ interest towards its goods and services. This process involves activities such as research, promotion, selling and distribution.
Urban Outfitters, Inc caters to the exclusivity, uniqueness, and distinctiveness of fashion to maintain their customer shopping experience entertaining, while Wal-Mart is considered a big box store. ...view middle of the document...
Wal-Mart’s market consists of “everyone,” which means they do not advertise about quality, they are more concerned about quantity. Their wide-spread nature cannot make their fashions distinctive, unique or peculiar because their scale of operation along with the large networks that Wal-mart and Sears owns will be available to everyone (Steven, 2009). Wal-Mart’s slogan is “Low prices everyday”, which means trying to target to a niche market and being trendy will not be cost effective. Being trendy is chic and not cheap, but being frugal is very easy, “You get what you pay for” (Steven, 2009).
Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer.
The big box stores could not sell merchandise identical to Urban Outfitters because they may never achieve a similar market impact and sales revenue. Their target is not a special group, their market is “everyone” and the goal is to “satisfy every need.” The big box stores tend to be frugal with merchandise a quality (Steven, 2009). The big box stores scale of operation cannot be narrowed to fit the market because they have a variety of niches. In order to sell the merchandise, they would need to relocate, target and establish in the Urban-Outfitters market. They would have to compromise operations in sales of other lines of products that do not fit in this niche and by doing so, they would lose money. The goal behind the big box stores is “quantity” not “quality” (Steven, 2009). Urban Outfitters is about exclusivity, distinctiveness of fashion and uniqueness.
Identify at least three reasons why exclusivity is valuable.
When any product sales on a limited distribution basis, with availability limited to fewer chosen stores, and more often at a slightly higher price, then the customers/consumers often attach a higher value to that product. This is the basis of the principle of exclusivity (Perren, 2006). Exclusivity creates a high value for a good or service even though this is based on perceptions enhanced by its exclusiveness; this also creates loyal client/customer base for the concerned stores because their clients/customers know they are can only get the highest value in those stores (Perren, 2006). The pursuit of exclusivity, originality, and distinctiveness is produced in the market niche occupied by any company (Carroll, 1985). As a result, the company is able to secure its market niche and client base (Carroll, 1985). The exclusivity established, is not easily duplicated and this makes it difficult for any new entrepreneur/company who may want to venture into the same market because through exclusivity a company can protect its market...