Eileen Fisher Repositioning the Brand Case Analysis
- Should EILEEN FISHER Reposition the Brand to Target the Emerging and/or Nascent Segments? Discuss the Pros and Cons of Repositioning the Brand to Appeal to Each Market Segment.
In attempts to expand its market presence, customer base, and increase profits, EILEEN FISHER Company should not disregard its older customers. Brand repositioning to target the emerging and nascent women remains a vital undertaking given the increasing median age of the established clients for the firm’s products. The self-consciousness, innovation, sustainability, and connection parameters of the EILEEN FISHER Company should help them include a large segment as well as target different age brackets. Based on the lessons from the struggle and/or fall of once established firms, including Dana Buchman, Ellen Tracy, St. John, and Anne Klein, EILEEN FISHER should pursue the launch for a separate brand for the emerging and nascent women distinct from that of the traditional consumers. In reposition their brands, the highlighted firms neglected the established customers and focused on the younger generations.
The constantly changing fashion market requires the firm to adopt new strategies to remain competitive. Even though reposition has some notable challenges, including increase in the prices of EILEEN FISHER line and reduced focus on the established target market, the fact that the company’s major customers are ageing and there is the need for continuity, certain marketing decisions have to be pursued.
Brand reposition is necessary with the current market conditions. EILEEN FISHER Company has to reposition its brand to focus on the nascent and emerging segments. The emerging customers are often more self-conscious than the established wing. Notably, EILEEN FISHER has a strong foundation of social consciousness, and therefore, self-consciousness forms the core of its operations. Even though the established category makes purchases multiple times, the emerging women obtain their power in the numbers in regards to the firm’s market base. Similarly, the increase in prices for the EILEEN FISHER line would not affect the established customers given that their net worth is in excess of $2 million together with high disposable incomes, which can be targeted to buying the products. The profitability concept for the nascent and emerging categories is factored on their high numbers given that they are the majority a per the age classifications.
The rising median age for the company necessitates the need to target the nascent and emerging segment. At 59, the brand was evidently headed to extinction as Hilary Old, the vice president for communications, opined. Therefore, continuous focus on the established customers would imply designing products for the old generation. The idea of launching separate brands would help in giving specialized attention to the different segments, thereby minimizing chances of alienating the exceedingly loyal and profitable clients, which the firm had nurtured over time. To stop the idea of customers aging with the founder, Eileen Fisher, the move to target the other two segments remains vital to the continuous stay of the firm.
The fashion industry is never static regarding the perceptions and definitions of specific trendy products. With the company’s powerful brand statement of “Beautifully simple clothing designed to move with real life,” it ought to accept the reality that consumers have different tastes and preferences. At the same time, not all clients are heavy-bodied. For instance, Eileen Fisher noticed that her 16-year-old daughter was not wearing her “beautiful” attires. From this dimension, the company should note that he definition of real life is dynamic, not fixed, depending on every generation. Therefore targeting the nascent and emerging groups will remain in the benefit of the EILEEN FISHER Company; their brands will appeal to a broader demographic segment and, at the same time, remain inspiring and inclusive, as advocated by its Service Values. Apart from moving with real life by accepting the changes in trends, focusing on the two segments would assist the company to meet its Culture Values of cultivating connection, instilling confidence, and inspiring creativity among its employees, who find new challenges to address. In addition, designing clothes that fit the body sizes of other customers, such that they do not wear baggy attires, instills confidence in the women fraternity – a goal that Eileen Fisher aimed to achieve when she started the company. Expanding the target segment would help the firm to meet the assertions in its brand statement, service values, design values, and culture values. The firm, eventually, would realize increased returns on investments.
On the contrary, the move to target nascent and emerging customers can have severe consequences on the firm. Having acknowledged that they are a smaller enterprise, Eileen Fisher presented an image of an organization that might find significant challenges in multitasking to meet the demands and expectations of the different segments. Familiar examples of extremely dominant firms that failed to attract new market segments and, worse of all, lost their traditional market bases include Anne Klein, Ellen Tracy, and Dana Buchman. Markedly, diversification remains a major challenge in regards to venturing into new locations – the UK and Canadian markets, as well as changes in product pricing and development of new brad image. The approach to reach different client segments, as Gerald Barnes, the president of Neiman Marcus Direct, indicated, is risky, as it can easily ruin business operations – it involves changing the overall brand image, which may be a challenge to the consumers when identifying with the firm. In sum, EILEEN FISHER Company is likely to register a decrease in the number of its core customers and invest much money in a non-fruitful venture.
- How Should EILEEN FISHER Reposition its Brand? Discuss the Pros and Cons of Your Proposed Brand Actions to Each Market Segment.
For the EILEEN FISHER Company to achieve continuity in the market and achieve significant success in terms of sales, it must reposition its brand in a way to that involves foot-to-toe products, but stick to the needs of the established customers. With the current economic environment, the company must change its brand to maximise the profit collection. The dilemma is between sticking to its established customers, who make the most substantial portion of its sales or target other potential groups of customers. Adhering to established customers’ needs puts the company at jeopardy of ageing with customers while reaching other groups may alienate the established customers.
For the established woman, the strategy is reasonably advantageous, as the company caters for all their needs. Notably, this category of persons makes the most substantial portion of the company’s customer base. Further, their purchasing power is quite high, and this will make the EILEEN FISHER Company maximize its profits. The group is keen on the changes that their bodies experience and thus are conscious about the outfits they choose. Moreover, the firm will not have to lower its prices as this group can meet the costs of the goods they buy. Their perception about buying is single branded, thus will be able to hire the most staff they need as the same shop. However, the company faces a challenge of continuity, as this group of customers grows old. The established customer will appreciate the changes that the company has put forward. Importantly, the changes in the brand strategy will never satisfy the entire women population. The fir must not compromise its position in the market by alienating the established woman.
Moreover, sticking to this brand would ensure that the EILEEN FISHER Company does not change its values, but rather strengthen its appeal to its customers. Remarkably, with time, the other categories of customers will enter this group. When this happens, the company can meet their needs and ensure that continuity is within its control. Even so, the group will not benefit much from the company’s decision to stalk complementary goods, as they are not concerned about the matching outfits from the feet to their heads. Since they prefer traditional costumers, their needs will undoubtedly be met.
To the emerging category of women, the change in the EILEEN FISHER Company brand will not favour them much. For this reason, the company will lose a significant portion of the market share to its rivals. Notably, this category of women is committed to attending to obligation relating to work, family, and economic status. Even though this category prioritises the trendy clothes, they can do with old outfits. For this reason, the company will get to command a portion of this target market. Further, the group is electric in the sense that they can mix both new and old pieces along as they stay attractive. Even though they may identify certain right outfits from the company, their conscious nature of spending will not allow them to purchase such goods. With their increasing power, the group will undoubtedly be at a position to obtain from the company. However, the group is keen on their spending and will undoubtedly have a lower buying power. Consequently, the EILEEN FISHER Company will not record high sales from this category of customers. Importantly, most members of the emerging group consider the outfits as old and belonging to their mothers. Further, the group has accumulated much wealth in the course of their lives and will undoubtedly afford even the most expensive outfits if they like them. Importantly, the group has a great liking for staff guidance, and this will make them try different outfits as per such advice. Therefore, the firm will certainly benefit much from selling to this category of individuals.
The strategy will not go well with the nascent women, who are majorly in their teens and early twenties.
Notably, this category is in a crucial stage of self-discovery. For this reason, they will certainly not buy from EILEEN FISHER Company. Since this group prefers high-end profile clothes, it will not make large portions of the company’s target market. Father, due to their economic status, the outfits will be too expensive for them to afford. The Nascent women tend to look for bargains that will certainly to go well with the factory’s strategy. From the new approach the company will not adjust its prices making the nascent women be out of reach for its products. The group can only recommend an outfit from this factory to either their mothers or grandmothers. However, as a member of this group transforms into the emerging group, their perception of the products will change and possibly begin buying different outfits from the company. Since this group prefers individual experimentation without guidance to try different products, it is difficult for employees to convince them.
In sum, the EILEEN FISHER Company must consider offering foot-to-toe products to maximize sales and increase profits. Even though this will certainly not benefit all group of its target market, it will enable the company to make more sales and profits. By sticking to its established customers, the company risks losing a significant portion of the market share. However, the strategy will enable continuity as the members of other groups to become of age.All free term paper examples and essay samples you can find online are plagiarized. Don't use them as your own academic papers! If you need original term papers, research papers or essays of the highest quality, don't hesitate to contact professional academic writing services like EssayLib. Here you can order your custom paper written according to your specifications. A team of highly qualified writers are available 24/7 for immediate help: