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Business Strategy of Cotton on

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Submitted By smoile
Words 691
Pages 3
The 4Ps
Price
Cotton On uses different pricing strategy. First, that is the penetration pricing strategy. The pricing was relatively low at the start of the business. However, after the improvement of designs and advertisement with more new stores, the pricing started to increase as it has become more known around the world. Secondly, it is practicing the psychological pricing. The prices are set at HKD$149 or HK$119 and so on, to let the customers feel the pricing is “cheaper” in a sense. Third, that is the bundling pricing. Cotton On advises its customers to buy more, like getting 2 tops for HK$130, while HK$79 for one. Fourth, that is promotional pricing. There are big sales in the selected seasons, such as Easter sales, and also the CNY sales.
Place
It has opened different stores all over the world, like Australia, Hong Kong, Malaysia, Singapore, Philippines, Thailand, Brazil and so on. The shops are located in the area that young people usually go for shopping.
Product
The products are targeting the youth with the fast changing fashion trends, with the wear-to-go outfits with quality but affordable prices. Clothing, shoes and other products are designed by a design team in Australia with more than 60 designers and trend forecasters. The turnaround time between the designing and manufacturing is two to eight weeks. Every quarter, each brand will conduct the range reviews. New products are sent to stores every day and new ranges are sent every week.
Promotion
Cotton On adopts the no-paid-advertising strategy, as a result, people in Hong Kong could not see any paid advertising of Cotton On. Instead, the way that Cotton On to promote itself is mainly by using word-of-mouth, as it tries to increase the quality and designs of the clothing.

Social Media Strategy
Website
The Cotton On website pops up an interstitial page when customers first time visit

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