Background Information on Boohoo.com
Boohoo.com serves as one of the leading fashion retailers in the United Kingdom with itstarget base being customers between 16 and 30 years. Boohoo.com was created in 2006 and has over the years been successful in capturing a significant regional market. Boohoo.com has its fashion brand that comes with over 36, 000 products. The headquarters of the organization are Dale Street, Manchester.
Contrary to other retailers, it is worth noting that products by Boohoo.com are own-branded. It is worth noting that the company has activeoperations in over 100 countries such as France, Germany, and the USA. The success of Boohoo.com can be traced to the innovative products and aggressive marketing approaches. Since 2012, the Company has been active in using social media platforms for marketing activities.
SWOT Analysis of Boohoo.com
PESTEL Analysis of Boohoo.com
The UK government is stable and has effective foreign policies that foster both regional and global trade. The low taxation policies in the UK have allowed Boohoo.com to earn huge revenue levels (Fill and Turnbill, 2016).
In the past five years, the United Kingdom has registered impressive economic growth. There has been a reduction in the level of unemployment, reduced taxation, and inflation rates. These factors provide the required incentives to propel the expansion of the Boohoo.com. Nonetheless, economic instability may affect the consumption trends thus reducing the revenue levels (Chaffey and Smith, 2017).
The country has improved quality of life, high literacy levels, and culturally diverse groups. The UK populationmainlycomprise of the young and working class. The group has a high disposable income thus increasing the consumption. Nonetheless, the high education levels imply that the population is conscious of the products they buy. The customers are sensitive to factors such as price and quality of the products.
Technology is swiftly disrupting the infrastructures of manybusinesses as there is an emphasis on adopting online platforms. The United Kingdom has improved communication and internet connection thus making it possiblefor Boohoo.com to integrate its operations with other organizations and processes. The fast technological changes may provechallenging for the Boohoo.com to cope with while also maintaining high-profit margins (Hanlon, 2019).
In recent years, there is a growing emphasis on the need to adopt sustainable business operations that consider theenvironmental, social and economic impacts of the operations. The United Kingdom has put in placestringent regulations that ensure that business operations do not disrupt the environment. There is regular scrutiny by UK agencies to ensure that there is compliancewith all the set laws.
The operationsof Boohoo.com must be seen to meet the safety and Health regulations in the United Kingdom. There are also laws that cover intellectual property, copyrights, workers’ rights, environmental conservation, and other areas. It is critical to note that the violation of these regulations may attract heavy penalties as well as taint the public image of the organization.
Geographically, the operations of the company are concentrated in Europe as compared to third world countries or Asia. European countries tend to have improved economies that guarantee high revenue levels. The products are further tailored to meet the trends and tastes within the European market. There is also the segmentation of the market using age as the brandsmainly target young persons who are seen as being enthusiasts of fashion trends.
The Company mainly target customers who are between the age of sixteen and thirteenyears. The age bracket mainlycomprises of a young population. The group is seen as having a great interest in fashion and also account for the highest portion of the United Kingdom population. The determination of the target market allows the company to come up with products that fit the tastes and preferences of the customers (Hanlon, 2019).
The brand is marketed as being a quality and affordable as compared to other rivals. The company has in the past sought to ensure that it places its products on online platforms. Online platforms allow for customers in different parts of the globe to order and pay for the products. Moreover, it creates a virtual store where the customers can access the features of the products.
Marks & Spencer House of Fraser
Narrow Range Wide Range
The perceptual map indicates that the Boohoo.commainly target middle-income customers with a narrow range. The argumentrests on the fact that the brand is lowly priced thus attracting the low-income earners. In this segment, the brand faces competition from River Island and Primark. There is, therefore, the need to come up with other measures that can be used to differentiate the product as a way of gaining competitive advantage in the market. The brand can be defined as being well-positioned and perfectly fist in both the regional and globalmarket.
Hanlon, A., 2019. Digital Marketing: Strategic Planning & Integration. SAGE Publications Limited.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences, and participation. Pearson.
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