İşletme Mühendisliği Retail Marketing Management-Marketing-Pazarlama

**Prof. Dr. Sinsi** · 12-20-2012

Marketing-Pazarlama

Retail Marketing Management & Developments in Retail Industry
Retail Marketing Management
In our fast changing world, almost every minute we are subjected to change and development

Every day, on tv,ads,in the places we go, in the streets we walk, can we easily see new marketing tools used by the companies in order to support their position and their products in the harsh market

The world is in such a hurry that, every minute that passes without innovation, is a wasted piece of time

In such a world, retail industry is also affected in many ways which make it harder for the companies to achieve their goals in the market

Okalov states in the Strategy Magazine that In today’s world, everything changes rapidly, and the companies have to keep up with these quick changes (Nov

2004)

Retail marketing world is a fascinating, people-oriented business based on service to consumers like all of us

Kristy and Mark indicate in Journal of Personal Selling&Sales Management that a relationship customer’s loyalty to the salesperson is significantly related to store loyalty as well as the important store-level outcomes of share of purchases, word of mouthand competitive resistance in an upscaleretail context (2000)

It is to say that we have been involved in retailing all our life

From the first time we bought chocolates from a grocery, to the time we bought new trousers from a shop, we have all been involved by retailers and retail marketing

Then what is retail marketing in real? It is one of the kinds of marketing, we can call the last link in the marketing chain of distributors, beginning with the producer and ending with the consumer

Retail marketing includes all functions involved in selling goods and services to customers including households, individuals and others who are purchasing goods and services for final consumption

Retailing companies have some major activities in their life cycle

These are purchasing goods and services for sale, storing, displaying, pricing, advertising, selling, financing, and servicing in order to complete the sale with buyers

All these activities should be performed carefully and feedback should be taken about them in order to develop the full marketing process

For instance, among these activities, in-store communication plays a vital role in the marketing process

It is stated in the Strategy Magazine that in-store communication supports the marketing process because customers are in the frame of mind to buy and are also more open to suggestions (L

D’Innocenzo,2004)

We can consider these activities in a cycle, which begins with identifying target market needs and wants

The kinds of products and/or services, sizes, shapes, amounts, time and place are to be considered at this stage

Later on, the price to charge should be determined, since the costs of the company should be covered and profits should be earned

At this point, the company should decide what to offer at which price, because the price should represent the value customers place on the product or service

‘If the customer thinks that what you are offering isn’t worth much, then how can you ever hope to charge a high price?’ says Noel Peebles in his article

Of course, charging a high price isn’t necessary in every situation, but if the company considers positioning its products at a higher point in the customer’s minds, then this point shouldn’t be missed

Continuing with the process, the customers should be informed about the products

All information and decisions about advertising, displaying the product, and sales methods should be covered without any points missing

Then, in the period of taking the goods from producer to consumer, transportation methods, financing, and services should be taken into consideration

In addition to this, the valuable distribution strategies vary from one retailer to the other according to the company profileand should be considered seriously

It is indicated in the European Journal of Marketing that, although the UK retailers follow high cost, high efficiency distribution way with a large and small number of RDCs, the rest of the other Europeans opt a low cost, non-composite model which’s aim reach the stage of centralizing their distribution(Fernie,J

1992)

The last and most important point is making sure that the customers are satisfied

However, while taking these steps, not only the marketing department but also all the other functions of the company are responsible

As mentioned in the European Journal of Marketing, different marketing activities carried out by different functional departments, and identified overall interactive marketing cultures support the company’s total marketing process (1993; 27,3, p

51)

The modern marketing process begins with the customers and ends with the customers

Therefore, a company should decide which of its products or services are really filling the intended need or want

Peebles believes that in the long run, it is always better to add perceived value to the product rather than decreasing the price for selling more

(Marketing Leaders Ltd

)

If the time shows that changes should be made, then the firm should revise itself fast to survive in the market

As we have learned from Human Resources Management and Management& Organisation courses, management issue exists in every situation when there are two people in the same environment

There is the manager, and the ones that are managed

In retail marketing, we can also observe management functions deeply

These functions are planning, organizing, staffing, directing and controlling as in almost all of the cases

Firstly, we have to decide what we are going to do and develop a plan to achieve our goals

In this point, our mission and vision becomes important

Later, we must decide how the work is to be divided and coordinated

As every retailer aims to construct long term customer relationships, it must be ensured that there are enough qualified staff to carry out the work

In addition to this, top management should direct its employees to perform, lead them toward goal achievement, and inform them about their work assignments

The final step is the controlling part, which focuses on measuring performance (by using methods like bench-marking, balance score cards, game theories), setting standards, and taking corrective action for developing the abilities of the marketing personnel

(Meyer, 1988)

Before we introduce the developments in the retail industry, we have to create a broad look at Turkish retail industry

An increasing number of Turks prefer to shop at shopping centers rather than corner shops, and retailing in Turkey offers other big attractions

First, it provides a source of cash - particularly lucrative in such a high-inflation environment as Turkey

However, falling inflation rates will shift their strategy to becoming operationally lucrative as these days’ economy

The rise of organized retailing in Turkey is due to several reasons

One of the major reasons is pricing: since organized retailers buy large quantities at lower prices and on better payment terms than their smaller counterparts, they are able to offer lower prices to consumers

They also offer a greater variety of products under one roof thanks to their larger sales areas

Increased use of credit cards (the number of credit cards grew eight-fold between 1991 and 1997) is another reason why consumers prefer organized retailers, as traditional grocers generally accept cash only

(A

C

Istanbul Office)

In addition, as more and more women are employed in Turkey and urbanization is increasing, demand for organized retailers is swelling

Urban population levels have increased to 6 percent, compared to an average population growth rate of 1

6%

(D

İ

E

)

These developments indicate that Turkish people have been familiar with large retail outlets for a short period of time, but they are getting used to these shops-most widely many similar shops belonging to the same big business groups-very fast

Almost every child has a mobile phone, wants to wear clothes of popular brands as a self-esteem and gives more value to the products that symbolize modernization and popularity in the urban areas

Furthermore, the companies that recognize this flow, place their products in such a way that people who don’t buy their products feel deficient

There are many retailers competing in the same market, so challenge gets harder every day

In order to deal with these problems, companies try developing new strategies for their target markets

For example, they create special combination offers, choose small customer segments in order to be effective and establish a subtal referral program that begins with the final consumers

(B

Leduc)

Developments In Retail Industry and the Future of Retailing
In today’s marketing environment, consumer attitudes change rapidly in accordance with changing life-styles, age groups, education, social perspectives and so on

To be able to carry on retailing successfully, retailers have to adapt these changes by developing themselves and evaluating their technology, process and organizational structure

As a consequence, the life cycle of retailer structures are getting short and new strategies or marketing compositions are aging rapidly

To adapt this cycle, new firms that are planning to steal the market shares of existing retailers introduce themselves as low-priced but same or high quality companies, and later they increase their prices slowly

For example, three years before, we were introduced shops in which you could buy any item at 1 million Turkish Liras

(1YTL)

Now, these shops have increased their priced to 2 or 5 YTL

Another aspect of today’s and most probably tomorrow’s marketing is non-store marketing, which allows the consumers to get anything they want by the use of internet, extranets, telephone and mail

What are the advantages of e-retailing? Most beneficial ones are cost effectiveness and time effectiveness

A person living in Kadıköy easily make his/her shopping from a store in Merter by just clicking on his/her mouse and giving his/her credit card number and have goods delivered at her address

On the other hand, e-retailing has some disadvantages

The evolution of electronic retailing will exponentially affect retailers’ market serving internationalization efforts, removing some of the existing barriers yet creating new ones (Vida,I

, Reardon,J

,Fairhurst,A

,2000)

For example, most of the customers do not prefer to use credit cards for e-shopping because of the probability of being hacked

Moreover, retailers that are selling a group of products are being challenged by other retailers in the same category but under a different name

As an example, we can buy trousers from a tailor, from Network, or from a different retailer such as Carrefour or Metro Grosmarket that acts in mostly food retailing

In addition to this, big retail chains gain more power over the other small shops because they have the ability to purchase large amounts of goods by decreasing the sales price of their suppliers

This gives them the bargaining power which is a milestone in supply-chain management

In a way, big companies gain more power in the market than the small ones because of the consequences that are considered above

However, if a retailer only focuses on its products without paying extra attention to the other variables that may change the leader in the market, losses can be faced which can put the company in a very bad economic situation

A recent study was conducted including 300 typical consumers in order to measure the importance of target marketing and two big retailers were taken into action using different approaches

These retailers are TopShop and Gap, which recognized that only thinking on merchandise isn’t enough and sufficient if fine-tuning of the stores have not been considered carefully (Newman,J

,Patel,D

2004)

Retailers use competitive tools for taking advantage in the market

One vulnerable tool is the technology that the retailer uses to support its in-store activities, constructing relationships with its customers, developing the store’s security, and accelerating the information flow throughout the store chains

In order to achieve these goals, they are adopting checkout scanning systems, online transaction processing, electronic funds transfer (EFT), electronic data interchange(EDI),in-store tv and improved merchandise-handling systems (P

Kotler,2001)

The retailers that have been successful in their actions are trying to move to the other countries and sell their products abroad to increase their profit

Turkey is one of the many countries which are affected by diversification

We can see many different retailers and brands belonging to different countries in almost every popular street

For example, we can come across Starbucks Coffees , Marks and Spencer, Carrefour, IKEA superstores easily

In the future, of course challenges in the retail industry will be harder, so some big retailers in Europe and U

S

A

are making outsourcing studies in order to prepare their retailing strategies with an outsider look

A study that can be a good example is scientific retailing, which is a kind of reinventing everything from weekly promotions to store formats by being able to predict future customer behavior based on past customer response to merchandising and marketing activities

This kind of study is not only a way of implementing new software systems for developing functions in the stores, but also developing the decision making process that improves inventory turns, sales, margins and drives stock price appreciation

By applying this methodology, J

Sainsbury PLC is now forecasting and replenishing more than 60,000 products across more than 450 stores, using customer demand to determine the precise products, frequency and order amounts that will maximize sales, profits and customer satisfaction (Accenture,2002)

Lastly, during a conference in Istanbul Technical University Şahin Tunga indicated that in the past, the companies had the power to affect their environment, bu now this power has shifted back to the environment

So the companies should be very careful in adapting themselves into their target markets( 06

12

05)

Analysis Report
PARK BRAVO
The firm was founded in 1970 by Kamil Özçoban in Ankara

At that time, the name of the company was DOLFIN

Later in 1972, the second store was opened under the name of BRAVO

In 1973, the names DOLFIN and BRAVO were combined together as BRAVO&DOLFIN and in the years that followed they opened new stores under this name

In 1980s the company changed its name as PARK BRAVO and moved its headquarters to Istanbul

In 1988 the company started producing in Istanbul under the name ‘FOLK LIMITED’ and within production their wholesale also started

The company has four brands under its structure which are Park Bravo, Nine West , Fizz, La SENZA

They have 18 stores in Istanbul and 62 in total

Among these, Park Bravo is a brand which is active in clothing industry, but the sales are being supported with Nine West for shoes and Bags, Fizz for young wear and La SENZA for underwear

The reason behind this is widening their customer portfolios

The company used to target business women, but with the effect of the challenge in retail market, the target market is widened by brands of different customer profiles

The old philosophy in the management was ‘life-style of a business woman’, but now it is the ‘life-style for everyone’

In the stores, night dress and high boots are their core products

Especially, since we are in the fall season the focus is also on high boots

In addition to this, the products are presented as jewels to the customers because the same product is not produced twice

By this method, they attract the customers strongly since the party of a product is limited

The buyer who manages to buy the product considers herself lucky

We see this point a strong milestone in retail marketing

It is also asserted in the Strategy Magazine that In-store marketing, when done properly, works - mainly because the consumer is in the frame of mind to buy

And as a result, they're also more open to suggestions(D’Innocenzo, L,2004)

The firm’s main aim is to preserve its existing customer portfolio and gain new customers

In order to achieve this, the customer needs and wants are investigated and the production process is directed in this way

New products are demonstrated to the last detail

The store manager narrated the marketing process as welcoming the customers like guests with a sincere smile, briefing the desired product in a detailed way, selling the product and taking customer feedback

We were not informed about customer classifying directly, but the company calls its ‘special’ customers during discount sales according to the customer identification cards

Also we were informed that buying frequency and purchased item’s price is a strong separator between the customers

This period indicates that the company classifies their customers due to their buying power

Furthermore, the company measures customer satisfaction by e-mail and by customer valuation forms

These forms and e-mail are examined and used for future product&service development

Being able to attract the customers is not an easy process, so the company cares strongly about new store place and store design issues

They prefer places corners and big shopping malls and famous streets which attract customers’ attention easily

Moreover, in-store design and placement is also an important aspect

The company doesn’t have a store-design team and this process is the responsibility of every employee

This is also a part of total quality management as they call it

In order to make the products visible, the spots are places in the departments

Also, new products are placed in the middle of the stores to direct the attention to these places

The music playing in the store is the mix of popular songs but the tracks are not dynamic

The managers pay extra attention to leaving a wide space for the customers

They are not using any odors to attract the consumers, which they think they don’t have to

The sales personnel wear daily clothes in order to make the consumers feel more comfortable

Technology is used both for stock tracking and in-store design

For instance LCD monitors are placed in the stores both for showing the new products and fashion shows

Also, NEBIM program is used for stock checking

By this way, the company is able to see all the stocks of all the stores at the same time

Rapid information transfer enables the company to arrange its stocks fastly

Furthermore, they are benefiting from the tehnology by the usage of lcd monitors in the stores

Analysis Report
POLO GARAGE
The company was first founded in 1977 by Levent Özçoban, who is still the head of management committee

The company has five brands that are registered throughout the world

These brands are Polo Garage ,Polo Garage Night, Polo Garage Sport, Polo Garage Active, Polo Garage Jeans and PG Rest

With these brands, the company aims to satisfy all kinds of customer needs and wants coming from all age groups

The company has 7000 m2 of sales area and 550 employees who are working under different departments such as fashion design, shopwindow design, showrooms, marketing, finance, sales and accounting

The firm also opened a new factory that is 4000m2 wide in order to decrease the unit cost of trousers and dresses sold

The company is working with 28 stores, 15 vendors and 10 corner shops

In Romania there are 4 stores exist ehich belong to Polo Garage, and in Moscow, there is one store

Among the franchisees, 6 stores in Ukraine, 2 in Philipinnes, and 12 exists in total

Among its products, trousers, shirts, t-shirts and dresses are the core products of the company

However, there are 1500 different kinds of products sold in total

According to the company, the main source of their marketing and sales force is product variety and rapid product design

The firm educates its designers in its headquarters and also abroad in order to be able to produce various kinds of products in limited times

Also, they have teams who make the in-store preparations for music, store design, and visibility of the products

These teams are also trained inside the company

For the in-store communication, sales consultants are trained, but every single sales assistant does not have his/her own customer portfolio, as mentioned in The Journal of Personal Selling&Sales Management(Reynolds,2000)

No outsourcing is used

The main aim of the marketing strategy is to gain as many new customers as possible

For that reason, the company tries to produce as many different kinds of products as possible

For the existing customers, SMSs are sent in their birthdays, in christmas, and in bayrams

The store managers say that the company has its own customer portfolio who are accustomed to the store service and the products of the company

Among these customers, many of them prefer the brand for its shirts and t-shirts

Quality of sewing type and fabric are the main reasons of this huge demand

Although the products are produced in Turkey, the fabric of these products are purchased from outside Turkey

By this method, the company tries to preserve its sales prices by avoiding the possibe economic fluctuations in Turkey

However, the inflation rates are stable in the last two years so the sales price of the company is decreasing when compared to 2003

During the selling period, when a customer gets into a store, he/she is not interfered by a salesperson for learning his/her demand

The customer is left alone for a short period of time, but the sales force watches her as she is trying to decide on a product

At that moment, the customer is supported by the sales consultant with a welcome and continued through the end of the process

In order to be more effective, the last person who is to give the product to the consumer is the store manager himself

Looking from another point of view, we guess that the firm uses both market development and diversification because both existing and new products are introduced to foreign markets in many different European countries

In addition to this, they admit that serving all types of consumers is not a logical and possible marketing decision

So, the company has developed a new strategy in which it segments the market into two different age groups that are 16-35 and over 35

It is believed in the firm that people from younger age groups have generally middle buying power who are students or new employees and who use more colorful clothes in their daily life

So a large number of colorful and fashionable products are targeted to this group

Also, in the stores the walls are painted with joyful colours that are supported with live music in order to make the shopping more attractive

For the older age groups, suits and dresses are pointed because the people who prefer these suits are generally the ones that are in contact with the company since 1980s and that have begun the middle age business groups who acquire more serious clothes for their meetings and offices

The supply-chain management in the company is just simple

When a new party of products are produced, the only important thing to measure is how many of them are sold

If the sales number is high, the stores rapidly repeat the order at a larger quantity

If not, the party’s last products are sold at a discount price

Furthermore, for a part of the customer relationship management, the products with errors, or the products with which the customer is not satisfied, a call center in the company exists

By this service, the CRM process is tried to be preserved at a high satisfaction level

The firm is not used to giving advertisements on anywhere, since the top management is not accustomed to this idea

In the past years, they did not give any advertisements because they did not have to

The sales were alright, the customers were continuously coming and so on

However, with the stagnant foreign exchange prices, the company’s profit margin began declining, and so they had to begin giving ads on the popular streets and on the billboards

The sales price of the company was higher than the average market prices, but now, it has declined

Since most of the fabric is purchased from abroad, the dolar is used for the purchasing decisions

As a result of this, fort he last 3 years, the sales prices of the company is below its competitors in the market

The company has a ROCI process, with which it decides opening a new store or not

The ROCI (Return on Capital Investment) process gives the company the information about how long it will take before the new store covers its opening costs

For a new store which is called ‘suitable’ in the company, it is allowed to take 1 year fort his period

The stores that have high rocis are not allowed to open by the top management

For the demographic elements that affect the consumer buying behavior, a feasibility analysis is made covering te age groups, genders, education, purchasing power and social class

After that, the design teams get into the process of designing new products, and astly, the products take their place in the stores

For the pricing issue, the company is not using competition pricing even if there is a competition between many retailers of the same group

They charge their prices based on their costs, which does not begin with the customers

So, the aim of decreasing the prices passes through cost reduction

In their pricing strategy, the firm use optional pricing too

For instance, while selling sports shoes or sports trousers, they also charge an optional price for sports socks, and place these products together

No cash discounts or quantity discounts are used, but we can say that the company uses segmented pricing, by charging different prices to allow for differences in customers, products or locations

Moreover, the company can be considered as using a corporate vertical marketing system which combines successive stages of production and distribution under single ownership

The distribution channels of the company are veing developed, but we can not exactly say that they are able to use integrated logistics management in their area

First because there is not a team working for providing better customer service and trimming distribution costs

Whenever a new product is developed, it is transported to the stores even if the trucks are half-full or not

This makes the process costly, which also affects the sales price

In order to overcome weak CRM, the company developed a strategy in which the problem of the consumer should be solved 90% in the store

By this way, respondiing time is shortened, which makes the smile on the customer’s face bigger

Analysis Report
DESA
The firm was founded by Melih Çelet in earlier 1970

In 1980’s firm enter to global market and started to export its products

Desa opened office in New York in 1986 and in England in 2000

The firm now exports to the 42 countries and its customers are the some famous brands of the world such as Ralph Lauren, John Lewis, Liz Claibourne and in 2004 El Cortes Ingles from Spain

Within the 40 stores, Desa presents its products in 140 selling points

The firm has two franchise programs: ‘Desa go’ and ‘Desa in’

First ‘Desa in’ store was opened in İstanbul in 2004 and Ordu, Samsun, İstanbul, Bodrum, Bolu and Ankara ‘Desa go’ franchises followed this

Desa has created two brands of Desa and Desa Interiors for confection and home products to diversify its market

All of its products are sold under its name Desa

Young and educated people in the 20-35 age group are the target of the firm

Desa provides its customer fashionable, high-quality, practical, spruce and fitted price products and widens its portfolio day by day

Firm envisaged thin clothes without lining beginning of this spring-summer season by the way it use product development strategy for growing its market

Desa creates image of self-confident, successful and well-kept for men; entertaining, spruce and energetic for women

Desa produces leather products and market them in its stores

Shoes, bags, leather clothes, suitcases, confection and decoration are areas of using leather; furthermore, confection is the Desa’s core product

Design and development of the products are made in Turkey from Turkish group

In addition to this, Desa is the distributor of Samsonite (brand of suitcase) and Aerosoles (brand of shoe) which is recognized the slogan of ‘Style and Comfort’

The firm uses this power to preserve as many customers as possible, since the Samsonite brand is a generally known brand

The most powerful factor that firm introduces itself is high-quality

According to this, Desa –is one of the big supplier of the Marks&Spencer- has gained The Marks&Spencer Quality Requirement (MSQR) which is being owned by 25 producer in the world

High-quality is presented to customers at a high price that is to say its target customers are in high level of income

Desa isn’t content with its current customer, so it aims to gain new ones for its portfolio

The firm has 108 thousand kinds of products with the combination of colour and model

In every season, it provides new products and classics of Samsonite to its customer

Within the receiving order from internet, telephone and catalog dependent on quantity, in the stores special sewing are prepared according to customers’ body measurement

Moreover, Public offering provides advantage to the Desa such as recognition more and economic addition

Desa classifies its customer as A and B classes depending on their income-level

Business and sports groups are building the biggest share in the company’s customer portfolio

All of its salespeople have their own customer portfolio

Additionally, it has the team that only care about customers

Stores and customers are valorized from ‘Store-check’ group with outsourcing and they report the result to the center

Furthermore, the company measures customer satisfaction by an e-mail of customer valuation forms

Firm has a center for customer satisfaction and collects information in its database

Customers are informed for discount sales, coupons are given and birthday messages are sent to the customer from this center

Additionally, polls are taken from customers by using outsourcing

The company chooses not only the famous streets, but also big shopping malls are preferred to open a new store

Desa has a visual team to design its stores

Products which can be used with the others are placed close to each other to attract customers

However, the store which is in the Cevahir Alışveriş Merkezi isn’t designed good enough, quantity of products are too many for this small store

Music isn’t used and the odor of leather spread to the store

Salespersons wear suit and they care to customer by firstly waiting for their look and asking their need

Additionally, price of products are different in outlets that are placed in different locations

Technology is used in all of the stage

Not only in the design stage, but also technology has a vital factor for testing stage of leather products

For example, water proof tests, durability tests and flexibility tests are performed in order to produce the best quality proucts

Moreover, all the stores and foundations are related to each other on internet for inventory control

Screens are one of the ways that recognize its products

Lastly, all workers in foundation are passed to health control in every six months according to risk of catching cancer, so the firm cares about security of its workers

Analysis Report
KOTON
The firm was founded in 1988 in a very small store/shop with a 25 m² area in Kuzguncuk by Gülden Yılmaz

In 1991, the second Koton store of 90 m² was opened in Beşiktaş, Istanbul

After 2 years, the firm opened a wholesale store in Istanbul

In 1996, Koton overhauled its organization with a view to design and manufacture its own products and the same year Koton opened a whole sale in Munich, Germany, which was Koton’s first point of sale abroad

The next year, the new Koton concept reflected to the design of the new stores

In 1999, Koton focused on franchising stores and opened 2 new stores under a franchise contract

The firm renewed and accelerated its information systems and logistics infrastructure in 2002, also the first franchise store abroad was opened in Kuwait that year

This went on and the number of the stores increased year by year

The number of domestic sales points was 182 in 2004 and 280 in abroad

These numbers increased to 208 in domestic and 297 in abroad in 2005

Koton objects to reach 282 domestic sales point and 320 abroad in 2006 and 350 and 405 in 2007 respectively

The company has three categories in their products

Koton category covers collections specifically designed for women who work and live in big cities

This target market of this category is the people who are between the ages of 20 and 30, loyal followers of fashion, able to keep pace with new trends and easily adopted to the modern life style

Koton Men as a second category is the “men version” of Koton

The age interval is from 20 to 35

The firm defines this category “as much meticulous and spruce as women when it comes to outlook” and “fond of night-life and social relations”

The third target market category of Koton is Olé

Olé is for younger and trendy women who are between 17 and 25

This target market is defined as “prioritizing comfort and fashion when selecting their clothing

” Presenting various products to different customer profiles brings a wide customer portfolio to the company

Koton presents 20 collections for 2 different seasons in each year

Every collection has 750 models and 350 of them are presented to sale

This means 15000 models is produced every year and 7000 of them can be seen in sale

With an easy calculation, it can be seen that nearly 20 new products are presented every day

Also, the same product is not produced twice

The firm aims to attract customers with the idea of “limited products”

According to the firm, the core principle that made Koton a leading brand both domestically and internationally within the past 17 years is rejuvenating itself everyday and offering its customers different and “can’t miss” products every time they step into a Koton store

The firm not only aims to preserve its current customer portfolio, but also to gain new customers

In order to achieve this aim, they make different things such as serving food to the customers, giving them the choice of smoking in the store and reading a newspaper while waiting the person who shops

Koton serves the same quality with a low price according to its competitors and uses this as a strength in the market which is compatible with their mission “to gain advantage over its competitors and become a worldwide brand by designing and offering a wide range of high quality and affordable products that will go beyond the expectations of all of its customers around the world”

Koton has no any define for “the best customer”

Every customer is equal for the firm; the most important thing is the pleased customer with the product he/she bought

There is no customer classification, they calls every registered customer in their databases at discount sales

Moreover, Koton uses some forms in order to measure customer satisfaction and also expectations and makes this with e-mails and customer valuation forms

Also the information comes from the customers about the firm is transmitted to the managers in order to use them at improving the products and services

Making the person who passes through your customer is not easy, so the location of the stores is very important for the companies

This task is fulfilled by The Strategic Team of Koton

This team, on annual planning basis, pinpoints new locations where Koton stores should be opened

Koton’s marketing and sales power is planned for wholesale, retail and exports so, Koton focuses on main streets in big cities, shopping centers and mega stores for new stores in order to take attentions of customers

Moreover, the in-store design and placement is a very important issue

The firm considers the visual of the stores, so they not only have a team in their main office, but also 2 staff inside of the store

In order to attract customers, the spots are used onto the products directly

The firm also uses music which is usually so dynamic for attracting customers

The personnel wear shirts in the same color in order to facilitate the contact between personnel and customer

Technology is used for several things in Koton

The firm uses LCD monitors in order to make the customers aware of fashion and new products

Also, Koton has the Winner program in order to following the stocks in all stores with an online system

Moreover, customer complaints can easily been followed with the internet and this makes the solution faster

Lastly, Koton uses internet as an alternative sale channel

Analysis report
NETWORK
Altınyıldız was founded in 1952, and for many years it has been the leader of Turkısh Textile sector

Altınyıldız Weaving and Apparel has been present related to Boyner Group in Turkey since 1985

Boyner Holding has specialized particularly in the fashion and textile sector

ıÜüWith a 200-year family history of experience in the textile sector, Boyner Group continues to operate in a number of fields ranging from ready-made garments to tourism

Boyner became a holding in 1991 and is now a leader of Turkish industry with its services in the retail market

Boyner Holding has specialized particularly in the fashion and textile sector

The brands of the holding are Altınyıldız, Network, Fabrika, Beymen, United Colors of Benetton, Sisley, Divarese, T-Box, Boyner Department Stores and Back-up

All brands of the Boyner Group are leaders in their sectors

But we will analysis Network one of the many brands in this study

Network which is rady-made clothing firm is created by Altınyıldız in September 1999

The company's first stores in İstanbul, İzmir, Ankara and Antalya

Today the Network is present in many countries around the world

In 1999, Network starts out with total 3400 metrekare sales area and 15 stores

Then the company broadened rapidly

All of Turkey and whole world is their market and they are very proud that they will act as a source and sales network for Network

Now, in Turkey there are currently around 45 stores

Nevertheles they target to open 2 new stores in İstanbul, Kalyon and İstinye

The company opened 5 stores further abroad so, it had increased its endorsement about 170%

The company's name, Network, and logo was distinguished because of their aim of world around brand

Network targets to be influential in the world with its quality and to strengthen its sector position thanks to helping experience and knowledge of Altınyıldız

Global company of Turkey, Network is the first company especially addressed to woman

The company puts forward the ideal alternatives to modern man and woman for their smrtness of both day time and night

Network replays to requirements of customer with product diversification that is increased obout 50%

The company designs 6 different collections which are fashionable and comfort every year

Target market of this category is the people who are between the ages of 25-45

Network's collections of product are prepared for modern man and woman , so so they contain suit, night wear, shirt, tricot, blouse, cravat, amnd overcoat

However, Network's main collection is supported by accessory collection that consisted of bag, shawl, foulard, necklace, earring, and bracelet

Network's core product is ancasual or formal man and woman wear

Althought the company focuses on formal (official) or not casual clothing, retailers are supported another more casual brands such as Fabrika and Intim

Fabrika was founded in 2001 like Network

Its average age of target customers is lower than Networks' and these customers have less power of purchasing than Network's, but they want to wear fashionable clothes

Another brand Intim is a new woman under wear clothing

Network is pioneer company in fashion sector, so it carries out innovation for its main collections

İt uses special altınyıldız's tissue that is manufactured by Fomula I Technology that is shining

lmagine a fabric that delivers a better performance in elimination of puckering; durable natural lustre, long lasting "brand new" look, improved formability, and enchanced natural skretch

Altinyildiz's Formula 1 fabrics guarantee to strengthen your competitive edge and satisfy your customers' needs in terms of fashion, guality and comfort

The firm not only aims to preserve its current customer portfolio, but also to gain new customers

Therefore, promotion and advertisement compaing are parts of Network’s growth strategy in marketplace

The company uses “one way vision” application on Maya building in scope of promotion

It is an enormous advertisement poster that is 2115 metrecares

Besides, “image catologues” are used to promote the collection of the season

While catolugues are prepared two times a year, professional Turkısh and foreign teams work together in order to create more value

Network’s season “Fashion Show” is one of the most important advertisement strategies

Also, the company supports culture-art activity, and it is the sponsor for some activities

For example, sponsor of National Basketball Team’s clothes, Nişantaşı Spring Festival, Odeon Cineplex Cinemas’ Summer Festival, like these

Price strategy of Network changes according to quality

Although it follows the marker value, its price is higher than market value

But, customers do not consider this because of its service and product quality
Network’s “definition of the best customer” is loyalty customer

In this respect, while they are accustomed the new customer, continuity of current customers is provided

In order to achieve this, the customers needs and wants are investigated, and products and diversificated according to these requiremnts then the customer satisfaction is mesures to take poll form is made by e mail, internet and face to face interview

Also, Stores are made atractive with music and visual disigning

Retail store place and instore design are the most important topic of Network

They focus on main street in big cities, shopping centers and mega stores for new stores in order to take attentions of customers

For example, Network stores does not open in a sports wear floor in shopping centers

The stores are near the other business wear firms stores like Beymen, İgs

Also, visual elements are cosidered instore design

Network has own “visual team”

This professional team is responsible all design in stores

Advanced technology is used from product design to sales

The firm uses Windows program for online connection between the stores

Network uses internet as an alternative sales channel like shopping online

Lastly, Network goes forward (improve) to be brand of the world thanks to its retail marketing strategy

Ofcourse, contribution of Cem Boyner’s and Altınyıldız’s names is a known reality about this developing of Network

Analysis Report
LCW
We are able to define the aim of LCW's marketing strategy is providing the same service and the same quality with the same product and the same price

Because of this, LCW has formed its marketing strategy on customer satisfaction so as to understand and provide the customers' necessities and requirements

In Türkiye, L

C

Waikiki which is received the leader of ready_made clothing market, had started initially with the second quality production

In the same time with the developments of Turkish economy, L

C

Waikiki succeed in the production of its positionin market competition that became difficult with the entry of international brands in Turkısh ready_made clothing market

Although LCW began its life cycle with the products of children, it accomplished to being brand for all parts of people

LCW's marketing concept consists of being more effective than their competitors in design, service and communication appropriate for their target market

Its marketing concept is being defined on the marketing mix or 6Ps ( product ,price,place,promotion,public relations and power)

Another component of their marketing concept is lifestyle of target market

Due to this, LCW has diversity of their products that provide their needs, wants and demands

Their growth strategies are the market penetration and the market development

They prefer to use market penetration with selling existing products in an existing market and market development with selling existing products in new markets

They started to use diversification with selling new things such as shoes, bags and belts

L

C

Waikiki considers market researches important in order to apply their customers demands very well

They are using descriptive and exploratory method to gain suitable information because descriptive method describe market potential for a product or the demographics and attitudes of consumers who buy the products and exploratory method gathers preliminary information that will help define the market problem and sugeest hypothesis

L

C

Waikiki have started to work with the system of store management due to the seperation of production and retailing since 2000

They are using this contact method and they are believing shop manmagement in order to gain the qualified data with the correct way

Market segmentation is using by LCW so as to facilitate for making decision and increase the service quality

Demographic segmentation is being used for age and gender differentiation and psychographic segmentation is being used for lifestyle variation

While L

C

Waikiki is offering its products both every age and every part, they don’t prefer to present different quality or different price

Because LCW aims to supply either same quality for low price or high quality for high price in order to gain all kind of people

Their posioning strategy focused on their basic qualifications such as the quality,variety and priceof their products

Widespread shop management nets, approciate price for approciate quality and the same service to everyone style are able to accept L

C

Waikiki’s superior features; however, huge investments for designs, studies in order to be international brade and poisining of its brade (from the brade of children products to the all parts of people product’s brade) are their reqirements so as to complete its weak qualifications

CONCLUSION& SUGGESTIONS

Park Bravo
The PARK Bravo is at the marketing concept since they analyze and serve the customers’ needs, wants and demands in a way that they think they are better, but they do not care about the society’s well being

So we can not put them into societal marketing concept

The market share of the company is nearly %15, and is still growing but slowly

They are trying to add more value to customer satisfaction by in-store service

The company’s shoes and high boots are the cash cows and their bags are the stars

Considering the 4Ps of marketing, the products of the company are well made, but low in variety, so the company began selling the other brand’s products too in order to make its product lines richer

By this way, they are working with Nine West, Fizz and La SENZA

The average prices of the company is higher than the market, and they place their products in their ‘special’ stores which are placed in big shopping malls, well-known streets, and other famous places

Park Bravo, as a promotion, uses small gifts when special products are sold

For example, when a customer buys an expensive high boot, she can be given the bag which is made from the same leather

At that point, t is thought that the customer will come shopping to their store again

As most of the stores in our study, Park Bravo is affected by some macroenvironmental forces too

The attitudes of their customers, the foreign exchange prices (since some of the leather is purchased from other countries), tax regulations and production technologies are the main factors that have a high impact on the company

It is investigated that the consumers’ buying behavior involving Park Bravo is dissonance-reducing buying behavior, since the customers do not see a very big difference between these kind of expensive brands, but they are highly involved with expensive and highly risky purchase

Looking from the company’s point of view, they want to change this behavior to habitual buying with creating strong brand loyalty

Market segmentation is a very important aspect in retail marketing

Kaufman also indicates in the Journal of Consumer Marketing that when retailers are able to understand challenges from the disabled consumer's point of view, the meaning of accommodation can be derived in terms of the specific retailer's sites of operation(1998, pp

94)

Segmentation is highly involved within the company

It can easily be understood that they segment the market into three parts which are based upon the customer’s age groups and purchasing power

Education, or social class is not a very distinctive factor here

There is also customer separation such as A, B, or C class customers

This method is done according to the purchasing power or the frequency of buying of the customers

Demographic segmentation is also used by the company, but the main segmentation criteria is income segmentation

Also the type of marketing that the company does is differentiated marketing

In differentiating, the company mostly does product differentiation

In a season, for 2 or more times, new products are demonstrated to the market

They do not use any services differentiation

The firm thinks that most of the customers are well satisfied with the products

In order to measure this satisfaction degree, they built customer forms in which you can write your personal information and interests in different product categories

Moreover, the company promotes its products by ‘important’, and ‘distinctive’ criteria since the products of the company are expensive, self-satisfying and considered as ‘special’ by the final users

The firm has chosen its overall marketing strategy as ‘More for More’ because in their opinion, they are creating more value than the competitors do; at a price premium

With this aspect, the products of the company can be categorized as ‘specialty’ products of high price, strong brand preference and low price sensitivity

At this point, the usual customers’ demand elasticity of price is very very low

In order to grow and take bigger slices of the total cake in the market, the company uses both brand extension and line extension in its growth path

Brand extension emerges because they introduce new brands and line extension emerges since they produce new products under the same brand name Park Bravo

The company, in order to increase its profit, has conducted both market development and product development

It made market development by identifying new market segments for its core products, and product development by introducing new brands and new types of products such as leather bags, gloves etc

However, if we are to investigate which growth strategy played a more important role, it is the product development phase

We recommend the firm to conduct market penetration, by adding new sores in current market areas to make it easier for more customers to visit

Also, improvements in advertising, sales and service might encourage customers to buy during each visit

Among the four well known marketing objectives, the company aims to become the product quality leader in the market, and employs special design employees for this reason

Also , in the production process, as much as possible, they try to use new techniques in order to produce higher quality products in shorter time periods

Furthermore, Park Bravo uses direct marketing by conducting with the customers with the help of customer forms and e-mail

Also, they use sales promotions in order to encourage customers to buy more at each visit and increase the frequency of the visits to the store

In the store, there are sales consultants, but there is no personal selling and there is not any consultant having his/her own customer portfolio

The company makes its total promotion budget according to the Competitive-Parity method, since they regulate their budget considering their competitors

It is not a very effective budget planning for a company aiming to become the quality leader-not the market share leader- in the market

If they use the Objective and Task method it will be more useful to the company

Lastly, considering about the promotion mix strategies, the firm uses the push strategy because they use the sales force in the stores and trade promotions in the market to push the product through channels

We recommend using the pull strategy in order to satisfy the true customer demands and since the market is a consumer market

Also, with the new products developed, the buyer readiness stage should be considered and advertisements, sales promotions and other things should be added in this strategy

POLO GARAGE
When we searched the information that we could gain, we understood that POLO Garage is at the Marketing concept among the marketing management philosophies

This is because they consider that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do

The company’s market is a growing market, and its growth rate is %10-%15

However, the company’ relative market share is %18, with which we can call that according to the BSC growth-share matrix, the company’s products are mostly stars

When we think about the 4Ps of marketing, we can say that the company is producing confectional products such as shirts- and t-shirts which are the core products

For the Price, relatively to their few competitors, their price is low, but relative to the total market, their price is very high

POLO GARAGE places its products in its big stores in order to increase the shopping quantity, and they use discount sales during the lat parties of the products

Also, POLO GARAGE gives some gifts when a group of products are purchased together

Investigating the macroenvironmental forces that affect the marketing strategy, we consider demographic factors such as age groups between 16-35 and 35+

Economic factors such as foreign exchange prices

Technological factors such as developed software programs for stock tracking, and political factors such as regulations

For the consumer buying behaviour, we observed that the consumers that are used to the brand again chooses this brand for their shopping

It is to say that habitual buying behaviour is effective here

However, the products of the company are not as cheap as salt, so we can say that there is also a strong effect of dissonance-reducing buying behavior

The company segments the market into small parts in order to serve all of them

This is a strong strategy if a company has the ability and power to serve many different sizes of segments

But they are not doing niche marketing

If they do, probably they will achieve ths because they also have age groups that wear business-class clothings and have enough purchasing power for these premium goods

(eger yaparlarsa tabiii bu bir oneri)
The company in short, uses demographic segmentation

Differentiated marketing is done by the company

For the product differentiation, the company continuously designs new products, and tries to use the latest fashion trends while producing these newly designed products

There is very little services differentiation in the company

That is the repair services for the products including errors in them

In considering which differences to promote, the firm uses ‘important’ and ‘affordable’ aspects because for most of the products of the company, the buyers benefit from long-lasting life-cycle of the products and their price- when compared to the competitors-is lower

The overall positioning strategy of the company used to be ‘More for More’ for many years, but now it has to change

These days we recommend the top management to decrease their prices a little and try the ‘More for the Same’ strategy in order to survive and make profit

By this way, they can keep up with the harsh market in which many similar firms compete

In our interview with Bora Erkuş, we were also informed about this change, when we offered our idea

He told us that the company was planning to do the same in the following days as matter of competency

In the subject of different products, the company sells specialty products because their price is high, there is strong brand preference and loyalty, special purchase effort and low price sensitivity among the usual customers

However, in order to attract the young people the prices are discounted often

Also, there is not an exclusive distribution at one or a few outlets

There are many stores existing in many locations

There are 4 brand development strategies

Among these, the company uses line extension, since they introduce additional items in a given product category under the same brand name Polo Garage

Also, they use brand extension, since they introduce new clothings such as trousers, jackets under the successful brand name Polo Garage, which used to sell mainly shirt types and pullovers

In addition to this, as a growth strategy, the company conducts product development since they produce new products very fast to their existing market

Market development can also be considered as an alternative for a big company like Polo Garage, since they segment and target their market systematically

The company strongly tries to preserve its patent, since there are many illegal producers who try to produce a similar product and sell it at the half price in the market using the brand name without permission

Product warranties also occur when a product is sold; in a given period of time, if there is a dissatisfaction, the customer can give the product bask or change it with another product from the store

There are 4 marketing objectives which are survival, current profit maximization, market share leadership and product quality leadership

Polo Garage, as most of the firms do, aims to survive in the market, but the main aim of the company is to maximize its profit

There are other strong competitors in the market so Polo does not plan to become the market share leader in the short and middle run

Also, they do not plan to become the quality leader, since that process requires very high capital investment in the short run

Moreover, as a marketing communication mix, Polo is directing most of its power to sales promotion and direct marketing

By e-mail, telephone, fax and internet, they are trying to communicate with their target customers effectively

There is no personal selling existing in the firm

Lastly, as for setting the total promotion budget, the company uses the affordable method, with which they think they can be successful

The budget of the company is regulated by the top management, and they do not want to put their money into risk for an open-ended promotion application

However, this is not a very suitable method for big companies like Polo, so we recommend using the Objective-and-Task Method by which they can achieve what they want by using promotion

In addition to this, pull strategy is more effective than push strategy for Polo Garage in setting their promotion strategy, which is a suitable method ince it begins with the customer demands

DESA
If we evaluate Desa, these results are known from it: Firstly, Desa is in the product concept, because the firm offers the most quality, performance and innovative products –superior products- to its customers

Although the company serves superior products to its customer, this may lead to marketing myopia

If we think that Desa has many competitors in the market and it sell for high price, this can be important factor for its future

According to this Desa may sell its products under current price or produce lower quality products to serve in cheaper price

Secondly, Desa has market growth rate of 10-15% and 20% of relative market share that shows Desa is in stars group due to BCGs growth-share matrix

The company has high growth and share, so it has big profit potential and it doesn’t need to invest more for growing

Desa’s marketing mix elements (4P’s) are constituted by leather products (product), high price (price), big stores (place) and discount sales and coupons (promotion)

Company follows many ways to growth its market

For example, firm penetrate the market by opening new stores, develop its market by being international and develop its products by making new trends like summer season products

Company succeeded to be lead according to this growth strategy

Thirdly, Desa is in the consumer and international market

Some macroenvironmental factors force firm

For example, its customers are generally in between the age of 25 and 40, both sex, business and sports areas (demographic)

Turkey has an industrializing economy, so it creates different class of income level

These rich and middle classes demand new types of products that the result of this economy (economic)

Animal leathers are the sources of products that the firm import from Italy and this animals are fed specially (natural)

Desa has to make practical, affordable and quality versions of products, so it has to use technology all stages of the production (technological)

Also, laws are the other challenges for company; Desa has to obey the rules like all the other companies (political)

Moreover, workers are in the risk of catching cancer, so firm care about it and they are controlled periodically (social-cultural)

Desa use these macroenvironmental forces for segmenting their consumers

If we assume that Desa most wants to reach its customers, we can say that the company uses the differentiated target market strategy (segmented marketing)

Many of the products designs are made according to their needs and demands

In addition, the competitive advantages that the firm have producing high-quality, good style&design, high performance and innovative features (product differentiation)

However, serving superior products is company’s best promoting criteria

Although firm follows more fore more positioning strategy, its basic strategy is more for the same

Desa has strong brand equity with high brand awareness and charging high price than the competitors

We mentioned that quality and price are important for Desa

That is why firm’s products are in the class of shopping products

Desa is one of the manufacturer brands that can be pronounced and remembered easily and mentioned with quality and only recognized by under its name (no meaning in other languages)

Desa has the other brand names such as ‘Desa go’ and ‘Desa in’ for franchising, Desa and Desa Interiors for confection and home products under its name

These separate family names show that how Desa made its brand name decision

Furthermore, Desa go and Desa in are examples of line extension, leather products for summer under its name is example of brand extension, distributing of Samsonite and Aerosoles are examples of multibrands and lastly Desa and Desa Interiors for confection and home products are examples of new brands which are strategies of brand development

Finally, according to product decision and social responsibility, product quality and safety and product warranties are important for firm

If we continued, Desa mostly use descriptive approaches (survey) to valuate own customers and itself

Attitudes towards the products and buying behaviours are collected by outsource for firm

Factors that affect its customers buying behaviour are cultural, personal, social and psychological

Generally, their occupation, income level and personality are the most effective factors of changing Desa’s consumers’ attitudes and generally, same customers prefer leather products that prove they have habitual buying behaviour

Finally, all information above proves that Desa follows two marketing objectives

First, company chooses the way of continuing its market share leadership but not the way of serving low price

Second and the basic purpose is being the product quality leader by the way of presenting higher performance quality with high prices

Moreover, marketing communication mix strategy of direct marketing is applied from company with direct communication

KOTON
The orientation of Koton towards the marketplace is marketing concept because the company considers important in knowing the needs and wants of target markets and delivering them better than competitors do

Marketing concept focuses on customer needs and integrates all the marketing activities that affect customers,so does Koton

There is not any information about Koton’s market growth rate and relative market share, so, the category of Koton can not be known according to BSC

Koton has a variety in its products with high quality and a good design

The price of products is below the market price as acompetitive advantage for Koton

Koton is very selective while choosing the places for its stores and usually prefers main streets, shopping centers and mega stores for store-placing

As a last component of marketing mix, Koton uses discount sales for promotion

The only one macroenvironmental factor for Koton is demographic

The younger part of Turkey’s population has a great ratio in total population

Koton also targets the people between 17 and 35 ages

This is a positive factor for Koton

Koton has two growth strategies: market penetration, selling existing products in existing markets and market development; selling existing products in new markets

Companies make market researches, so does Koton

Kotoh uses descriptive method as a research approach, which fits with Koton in describing market potential for a product or the demographics and attitudes of consumers who buy the product

Koton generally uses mail and personal contact methods in order to collect data

There are some effects affecting consumer buyer behaviour, Koton is also affected by some of them such as age, economic situation and lifestyle as personal effects

Koton has a target market in an 17-35 age interval, so neither a child nor a very old person can not be in Koton’s target market

In addition, Koton defines its target market as the people who likes modern life style and being spruce, so, lifestyle is another effect for consumer buyer behaviour

One of the points of marketing is market segmentation

Koton makes the market segmentation according to the demographic factors such as age and gender and psychographic factor such as lifestyle

Company has three segments; Koton, Koton Men and Olé

Koton Men provides seperation from Koton and Olé according to the gender

Olé is another segment different from Koton according to not only age but also lifestyle factors due to targeting younger female with connecting comfort and fashion together

Koton uses undifferentiated marketing as a marketing strategy

The company produces its products and sells them under the same brand, in the stores which have the same formats

In market positioning, Koton uses product differentiation with serving bags and accessories in the stores with the clothes, and services differentiation with some offers and giving smoking opportunity inside of the stores

Koton also sells its products having the same quality for less price, shortly-according to “the same for less” strategy

Koton’s products are classified as shopping products which are less frequent purchased consumer products and services that customers compare carefully on suitability, quality, price and style

The brand Koton has high consumer awareness and helps when introducing new products

Koton uses line extension – existing product category with existing brand – as a brand development strategy

Additionally, the products of Koton have patent protection and product warranties

Koton applies less price for the same quality in order to achieve its marketing objective ; market share leadership with reducing the price and also the profits

Koton’s marketing communication mix has four components ; discount sales as sales promotion, press&media relations as public relations, fashionshows as personal selling and internet sales as direct marketing

NETWORK
Altınyıldız based clothing retailer Network has been carried on management and development of the brands commercial activities in Türkiye and in the European countries

Network is a leader company of its own sector thanks to Cem Boyner’s signature and Altınyıldız’s quality

Network operation has been a source of pride and joy and has always had an increasing trend and brand value

The company has spread throughout in Türkiye like the other brand

The marketing concept of Network consists of focusing on needs/wants of target consumers and delivering value better than the competitors in the market

Network Company Orientations Towards the Marketplace is marketing concept

It Focuses on needs/ wants of target markets & delivering value better than competitors

Key to achieving organizational goals consists of being more effective than competitors in creating, delivering and communicating customer value to target markets

There are four important components of Network’ marketing concept: Target market; Customer needs; Integrated marketing; Profitability through customer satisfaction

The company’s main taget market is business man and woman wear

For the customer needs, consumers are fully conscious of their needs

They wants to wear modern business clothing, not classical

They may use words that require some interpretation

The company focuses on 4P (product, price, place, promotion) and realizes the works successfuly as we mentioned in our study

The company has quality products and they should continue to serve

For the first of the four p’s which is product, the company produces modern business clothing products

The sales price is higher than the competitors and besides, they use components efficiently in order to promote their products

Network is very careful about selecting the place where they open a store and sell their products

However, its store position is important about growth strategy in retail marketing

Also, the firm uses advertisement posters, image catalogues and fashion shows in order to promote its products

Summerfield states in the Strategy Magazine that many new Technologies make advertisers able to target their target customers well, and with the help of the web-based distribution, national and local flexibilities are earned(Oct

2005)

The company uses this flexibility to gain power by its adds

The macroenvironmental forces that affect the company are various

Among the demographic factors, the age groups between25-45 (generally), both sex, and business men/women

The economic factors such as industrialization,create a new rich class and a small, but growing middle class, both demanding new types of goods

The technological factors are the production technologies

In today’s production era, new technologies enable many firms to earn the competing power as in the example of Network

For example, the products of Network are produced by Formula 1 Technology

By this method, the company can produce highr quality products than its competitors

Furthermore, the political factors are the laws and regulations of the government

As a component of marketing concept, the target market of Network is the people who like modern business lifestyle between 25-45

The company can consider their quality and well-design components together and add new styles in order to have a large target market age interval

The company continues the operations in its politic, economic and technologic makroenvironment

The company conducts surveys and asks individuals about attitudes, preferences or buying behaviors

We can say that the kind of research that the company use is descriptive research

The desciriptive method is to describe market potetial for a product or the demographics and attitudes of comsumers who buy the products

In order to obtain the qualified data with a high speed , the company should consider the contact methods such as e-mail , phone etc

Network’s “definition of the best customer” is loyal customer

In this respect, while they are accustomed the new customer, continuity of current customers is provided

While Network’s customers do the shopping, their buying behaviors change according to their social class, roles and status, age and life cycle, occupation, economic situation, lifestyle, personality and self-concept

Besides, Psychological Factors such as attitudes are important topic about Consumer Buyer Behaviour so, it is desciribed a person’s evaluations, feelings and tendencies toward an object or idea and they are difficult to change

At this point, we group the customers according to their buying behaviors; and say that their buying behavior is habitual buying behavior

This is because they don’t even think about risk when they make shopping from Network

Network also makes market segmentation like many others company such as ; Koton , LCW, PoloGarage

They used age and gender factors for making demographic segmentation and lifestyle for psychographic segmentation , too

Also , server differantiation is used as a compantative advantage

In addition to this, market targeting of Network is high level income owner customers that want to wear modern business clothes

Also, The Fabrica brand targets younger man/woman than targeted Network

Network conducts differentiated marketing as mentioned in the article of Besanko, ‘…there is differentiated forms of products which provides flexible distribution to a non-homogeneous customer profiles’(Sep

2003)

Besides this, fot the technological issues, Network uses special Altınyıldız's tissue that is manufactured by Fomula I Technology and which is shining

Therefore it has quality products and special designed clothes

Also, image differentiation is used by Network

Cem Boyner’s and Altınyıldız’s names are known realities about the development of Network

The company has been using the same model for catalogues for 7 years, so they provide that integrity of brand –model

The company uses ‘important’, ‘distinctive’ and ‘preemptive’ images for the competitive advantages

Also, the positioning strategy of the brand is ‘More for More’, since the prices of Netwrok is higher than the competitors and the market

Network’ customers pay more money for more benefits so, they have had more quality and more distinct designed products

The firm’s product classifications can be considered in two groups

Most of the products are specialty products, bu the brands Cem Boyner and Altınyıldız symbols the convenience products related with their price

Also, since the Network uses a special production technology and special design, their products can be grouped as special

Network has high consumer awareness, strong brand loyalty and charges a higher price than competitors

These are the advantages of the brand equity that the firm benefits from

Also, when we think about the brand development strategies of Network, we see that the company uses line extension by producing different kind and colors of products under the same well-known brand name

Product decisions and social responsibility are carefully considered in the firm

Under this issues, Network strongly protects its Boyner and Altınyıldız patent, its product quality and safety

Also, all the products sold have warranties because the firm also considers social responsibility as a vital factor in consumer satisfaction and society’ velfare

The marketing objectives of Network are both Market Share Leadership and Product Quality Leadership

The company aims to stay as the quality leader in the future both by developing its production process and developing its fabrics

It is a leader in fashion wear sector in Turkey thanks to its product quality leadership

Its market share is 20% among the business high class clothing category

Since the company aims to stay on top, it uses public relations, promotions and advertising to reinforce its sales

It uses “one way vision” applications on big building, fashion shows and image catologies

Also, it is the sponsor of National Basketball Team’s clothes, Nişantaşı Spring Festival, and Odeon Cineplex Cinemas’ Summer Festival

As a result, Network’s retail marketing strategy is successful in general

Its retail network of many stores around the world is increasingly focused on large floor-space points of sale offering high quality customer services and now generates a total turnover of approximately 4 billion euros, net of retail sales

From this point of view, it is seems that the company will continue on this line in the future

LCW
Consumers will favor those products that offer the most quality and good service features

Managers in product-oriented organizations concentrate on making superior products and improving them over time

According to this assumption, the customers will prefer to take the well-made products and can evaluate product quality, service and price

When we considered the market growth rate of LCW (%15) and relative market share together (%35), L

C

Waikiki is taken charge of stars according to the Boston Consulting Group’s Growth-Share Matrix

LCW’s marketing mix includes the 4Ps that are consist of product such as spruce, sports and casual products, price which is claimed normal level, place in big stores and promotion with discount sales

They have some macroenvironmental forces that includes demographic factors such as ages from 5to 45, both male and female sex, spruce and casual man/woman or sports areas; economic factors that are affected on their industrializing economies

In addition, cotton which is their big sources is called in natural factors; the effects of technological factors are perceived from both technical and commercial challenges; politic factors that are arranged by laws and social-cultural factors are organized suitable for society’s basic values, perceptions, preferences and behaviors

They are using market researches to gather data by observing people, actions and situations with exploratory method and ask individuals about attitudes, preferences or buying behaviors with descriptive method

Consumer buyer behaviour is influenced by lots of effects like social effects such as roles and status; personal effects that consist of age and life cycle, occupation, economic situation and lifestyle; psychological effects such as attitudes and beliefs

LCW’s customer behavior is called the variety-seeking behavior as to types of Buying Decision Behavior

Market segmentation is observed as geographical segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation in LCW so as to provide facility in making decision

In L

C

Waikiki, target market segment is selected as the differentiated (segmented) marketing appropriate for their customers

Product and services differentiations are able to describe competitive advantages that are superior and preemptive than others in market positioning

Their market positioning strategy focused on fewer prices for same benefits or more prices for more benefits

LCW’s products are classified in convenience products

The brand of L

C

Waikiki has some competitive advantages like high consumer awareness, strong brand loyalty

Line-extension and new brands strategies are using in order to develop their brands

Product quality and safety, patent protection and product warranties are vital point for LCW so as to provide product decisions and social responsibility

LCW aims to obtain marketing objectives as market share leadership and product quality leadership

According to Marketing Communication Mix (or Promotion Mix), LCW are using advertising, sales promotion, public relations and direct marketing