A new positioning for Shadow in the marketplace
We’ll imagine a brand called Shadow that exists in the fast-fashion category alongside competitors like Gap, Uniqlo, and H&M. In the most current year, sales for Shadow declined by 12% while most competitors were flat or up 2%-4%. Zara and H&M were both up around 5% in that year.
Shadow and H&M share a similar target audience, young adults (21-34) with incomes below $50,000.
Part 1: Write a Positioning Statement
Describe Shadow’s current position in the marketplace based on the perceptual maps above.
What additional data does Shadow need to understand its place in the marketplace, e.g., what are dimensions beyond price, quality and trendiness you need data on?
With the data you have, describe a new positioning for Shadow in the marketplace with a focus on the dimensions you need to improve on.
You can discuss Price and Product changes in your Re-Positioning.
Sample Solution
Write a Positioning Statement
Shadow's current position in the marketplace
Based on the perceptual maps above, Shadow's current position in the marketplace is as a fast-fashion brand that is perceived to be less trendy than its competitors, such as H&M and Zara, but at a similar price point. Shadow is also perceived as having lower quality products than some of its competitors, such as Gap and Uniqlo.
Additional data needed
In order to understand its place in the marketplace more fully, Shadow would need to collect additional data on the following dimensions:
- Brand awareness:Â How aware are consumers of the Shadow brand?
- Brand image:Â What are consumers' associations with the Shadow brand?
- Brand preference:Â Which brands do consumers prefer when shopping for fast fashion?
- Customer satisfaction:Â How satisfied are customers with the Shadow brand?
Full Answer Section
Shadow could collect this data through customer surveys, focus groups, and market research. New positioning for Shadow Based on the information that is currently available, Shadow could reposition itself in the marketplace as a fast-fashion brand that offers high-quality, trendy clothing at an affordable price. This would involve improving the quality of its products and making them more trendy, without increasing prices significantly. Changes to price and product In order to achieve this new positioning, Shadow would need to make some changes to its price and product. Price: Shadow may need to raise prices slightly in order to cover the cost of improving the quality of its products. However, it is important to keep prices competitive with other fast-fashion brands. Product: Shadow needs to focus on creating more trendy and fashionable clothing. This could involve hiring new designers, collaborating with fashion influencers, and conducting more market research to understand what consumers are looking for in fast fashion. Positioning statement: Shadow: High-quality, trendy fast fashion at an affordable price. Shadow can communicate its new positioning to consumers through its marketing materials, advertising, and in-store experience. Here are some specific examples of how Shadow could improve its price and product to achieve its new positioning:- Price: Shadow could raise prices for its core products by 5-10%. This would allow it to invest in higher quality materials and construction. Shadow could also introduce a new line of premium products that are made with even higher quality materials and construction, and priced accordingly.
- Product: Shadow could hire a new team of designers with experience in fast fashion. It could also collaborate with fashion influencers to create exclusive collections. Shadow could also conduct more market research to understand what consumers are looking for in fast fashion and use this information to develop new products.