Urban Outfitters Continuing Case Study
Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image
The reasons for stores like Urban Outfitters to be able to create such a culture are their ability to operate with low and medium volume. Hence it is possible to change the output based on changes in demand. For example, the 'Urban Outfitters' followed the policy of locating stores that have the concentration of targeted customers, and this also effectively made use of the existing structures to provide customer targeted fashion and label apparel and home furnishings. These could be promoted by the use of strategies like visual merchandising, displays, and customer related merchandise which naturally had higher prices and low volume. (Funding Universe, n. d.)
The advantage was that the company markets to a known demand at a set price. In the case of Wal-Mart or Sears, the problem is compound because the customers of the companies are set in a broader range and hence these companies are forced to manufacture on a high volume, and keep its profit margins very low. Bulk production is not a method to create fashion or a counterculture. Secondly, the Urban Outfitters serve an exclusive region and specific customers whose fashion choice and trends can be noticed and gauged. Thus within the smaller geographic area the company that can change with the changing trends faster can beat the companies that mass produce and are unable to change at short notice.
2. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer
The possibility of the big companies selling products identical to the Urban Outfitters is not impossibility. The question is will the sale actually take place bringing in the same revenue as it does for the Urban Outfitters. This is because when the big companies are considered, the customer's experience does not include exclusivity and a possible experience that is unique in shopping. This not only involves the shopping experience but the shoppers also come with feelings that Pooler (2003) calls consumption mind maps. This includes the shopping environment in which they shop and their likings. In the case of Sears and Wal-Mart, this is uniform and similar all over the outlets. (Pooler, 2003)
There is no differentiated shopping experience hence no different maps for the consumer in the shopping experience. To those who often shop in the monotony of the big malls, smaller but quick adapting places like Urban Outfitters offer the difference where the consumer feels an environment that is focused in him or her. "The shopping map of the mind" is based on years of layers, and in that the big companies have already been slotted. (Pooler, 2003) Though the map for 'Urban Outfitters' too will exist, because according to Heine, none of their stores look alike. They renovate the old buildings and adapt for example, the Ann Arbor store is in an old theater and unconventional place and have renovated it to make it trendy. (Funding Universe, n. d.)
Thus it is not possible for the big Sears and Wal-Mart to market and sell the same way, though the production and distribution can be achieved. In this case there is a difference in location, and the product, while the advertising of the companies focus on different things, promotion is based on the exclusivity of the location that appeals to youth. While the pricing for Wal-Mart and Sears is competitive, the customers who are targeted by the Urban Outfitters do not mind paying more for a little more ambience, trendy products and a feeling of satisfaction that the big companies cannot hope to emulate because they are already in the mass market slots in the customer mind maps. Hence it would be an uphill task for the other companies to reinvent themselves.
3. Identify at least three reasons why exclusivity...
Urban Outfitters Case Study Urban Outfitters has defined a highly differentiated and unique shopping experience, supported by the eclectic and highly varied store layouts and merchandise strategy. This approach to retailing appeals to the individuality and uniqueness every consumer also sees in themselves, allowing the consumers to define themselves by what they like. INA actuality, Urban Outfitters is more aligned to key marketing concepts and strategies than its much larger and
Exclusivity for these groups signals uniqueness. In a creative and individualistic society such as America's, uniqueness has cachet and value to the consumer, so any fashion item that can convey this uniqueness will also have value. Exclusivity also has value because of its scarcity. This is a simple supply and demand equation. The price of a good (its value) is related to the demand for it and the supply of
Since the supply is being specifically restricted, only a price increase could occur. Thus, creating exclusivity creates value to the seller. The third reason why exclusivity is valuable is that it creates differentiation (Finkelstein, 2009). Differentiation is a key driver of value for many products and services. Exclusivity does not equate to differentiation, but it does increase the perception of differentiation, simply by virtue of the fact that the product
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now