Introduction and the background of the company
Wet Seal is a clothing retailer that is oriented primarily towards the needs of young women as well as teenage girls. This company operates 470 stores located in the United States and Puerto Rico. It includes two divisions, namely, Wet Seal and Arden B. Currently, this organization has to struggle with the competition of fast fashion retailers and junior specialty stores. Moreover, the financial performance of this business has declined in 2013 in comparison with the previous year (Wet Seal). For instance, in Arden B, the revenues decreased by 28 %; in turn, the total sales diminished by 7 percent (Wet Seal). These are some of the main challenges that need should be taken into consideration.
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Overall, the difficulties of Wet Seal can be explained by the competition faced by this organization. Nevertheless, this business can cope with these challenges, provided that it makes a more efficient use of social media which enable clients to share impressions about different products.
Action Point One: Target audience
The company has properly identified its target audience. It should be noted that this organization serves the needs of females whose age ranges from 17 to 25. These people represent various ethnic, racial, and cultural groups. Overall, they can be described as middle-class customers because they purchase mostly economy-priced apparel or footwear. In most cases, these buyers are unmarried. Furthermore, it is possible to argue that they attend college, and as a rule, their professional career has only begun. These are the main demographic characteristics of these people, and they should not be overlooked.
The customers of this company want to purchase informal clothing that can help them express their individuality. In many cases, they are willing to experiment with new forms and styles in order to emphasize their physical attractiveness. Moreover, these females take an active part in social life. These females value independence, but they also attach much importance to intimacy. Additionally, many of them are driven by the need for achievement and self-actualization. These are the main peculiarities of their profile.
Admittedly, one may suggest that the target audience of the company should also include males representing the same age group. Such an approach can increase the market share of this business. However, it is important to remember that the company has been known as a retailer which serves the needs of females. The mission of this business is to assist females, rather than males. In order to change the public opinion and attract new clients, this organization would spend significant capital on rebranding and advertising. This organization can become less appealing to female clients, if they choose to sell male apparel. The problem is that this business can eventually lose its differentiation.
Action Point Two: Product Categories
The selected items can be described as high-wasted jeans that are expected to become a major trend in the spring of 2014. The prices for these products range from $ 28.19 to $ 39.50. To a great extent, this pricing is consistent with the purchasing power of the target audience served by Wet Seal. Overall, this product category will be important for the overall sales of the company.
This category is represented by a variety of models and designs. Currently, it is difficult to determine which model will become the major trend during the next four months. Some of the products, which are expected to be popular, can be described as luxury brands, and they cannot be afforded by potential clients. The selected shoes are intended for people who want to buy informal footwear. These customers may represent different age groups, including those people, aged between 17 and 25. Similarly, the pricing reflects the purchasing power of these people.
This category of merchandize has been selected because such products are often bought by female customers who want to underline their physical attractiveness. The price range for these items will be between $ 14.90 to and $ 20.90. Provided that, the prices are higher, the clients of Wet Seal may not be ready to buy these products.
The customers of Wet Seal expect to see a wide selection of shorts. The price for these products should not exceed $ 25. The items that have been selected represent the fashion trends which can be observed in the spring of 2014. These models can enjoy significant demand among a wide range of buyers. This is one of the points that can be singled out.
This product category is also important for the profitability of businesses like Wet Seal. These products are in usually in great demand among female clients aged between 17 and 25. The following photographs depict some of the items that the company can offer. These products will be priced at approximately $ 20 since in this way, one can offer the best ratio of price and quality.
Action Point Three:
Finally, it is necessary to discuss on the development of the marketing strategy that Wet Seal can adopt. First of all, the company should focus on the reduction of prices. This goal is important for attracting the target audience. It should be kept in mind that the purchasing power of these people is not very high, and the company should offer products that are more affordable to them. Nevertheless, the management should also focus on advertising and promotion. In particular, much attention should be paid to the use of social media, for example, one can mention such websites as Facebook or YouTube. The company should use SEO (search engine optimization) methods to make sure that the Facebook account of Wet Seal is visible to potential accounts (Enge 340; Odom 25).
Secondly, they need to make sure that the website of the company can be accessed via smartphones. The clients should be able to see new offerings of the company. Additionally, this organization should rely on such a technique as viral marketing (Weinberg 22; Weir 33). This approach is based on the premise that clients share the information of products. The clients of this organization tend to share their impressions about products and services. In some case, they send post links to the websites of businesses. The use of social media can make advertising less obtrusive. These are the main aspects that can be identified.
Enge, Eric. The Art of SEO, New York, O’Reilly Media, 2012. Print.
Odom, Sean. SEO For 2011: Search Engine Optimization Secrets, New York:MediaWorksPublising, 2010. Print.
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Weinberg, Tamar. The New Community Rules: Marketing on the Social Web, O’Reilly Media, 2009. Print.
Weir, Michael. QR Codes & Mobile Marketing for the Small Business Owner, New York, Cengage Learning, 2010. Print.
Wet Seal. “The Wet Seal, Inc. Announces Fourth Quarter and Full Year Fiscal 2013 Sales Results”. Wet Seal, 2014. Web.