Urban Outfitters Continuing Case Study Part 4: Marketing a business
Introduction to Business – BUS100001041

Christopher Bell

Instructor: Professor McNeil
Strayer University

December 1, 2010

Urban Outfitters Continuing Case Study Part 4: Marketing a business

Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image.

Businesses such as Wal-mart or Sears are built around serving the most products to as many customers possible. Let’s start with Wal-mart. In 2010, Wal-mart served customers more than 200 million times a week at more than 8,600 stores around the world. You may recall hearing several mission statements in the many years of Wal-mart business. In early years Mr. Sam Walton was heard “To give ordinary folk the chance to buy the same thing as rich people.” This statement has evolved throughout the years into many slogans, but for most part they continue on with the same concepts. “Help people save money so they live better” and “Always low prices” are two more recent examples.
Sears mission statement states “To grow our business by providing quality products and services at great value when and where our customers want them, and by building positive, lasting relationships with our customers.” If we look into the meaning of trendy counterculture the layers of the onion begin to peal back and we can get a better understanding of why these two giants are unable to capture that market. Trendy relates to fads and bandwagon type of items. Counterculture refers to the lifestyle and values opposed to those of the normal culture. Countercultural persons are typically very independent and free of what everyone else is doing. This is easily seen today in clothing. Many people buy clothing articles that appear to have been worn and torn by someone prior to them making the purchase. This style has become a fad set by one someone who may have been countercultural, not because he or she wanted to wear their clothing in that manner but maybe because their belief was that they jeans did not need replacing. These items become a fad and then begin to show up in your large chains such as the two mentioned earlier. Neither of these companies could possibly offer items to such a large number of customers prior to knowing how their public will accept it. That would show that they are setting precedent to cater to the community that wanted that item and cause high losses in their revenue.

Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer.

Major chains that are after the majority of the market cannot sell merchandise identical to Urban Outfitters. These stores attempt to duplicate the success of markets by offering items that have been designed to mimic those sold in countercultural shops, but are produced in large quantities and sold around the world. Urban Outfitters and other niche markets cater to a small crowd that enjoy being different and enjoy having items that are not currently stylish or that may be one of a kind. When you are in the business of satisfying such a large amount of individuals, your business is not to sell each person an experience but to sell them a product that they like for the price you are offering it.
I think that these larger Corps attempts to follow the trends set and provide similar products, in high quantities and lower prices. There are some downsides of this type of business however. First, trends tend to come and go faster when everyone else is doing what you are doing. Secondly, these stores battle with quality over quantity issues and this could damage their business.

Identify at least three reasons why exclusivity is valuable.

From childhood, humans are attracted to things they cannot have. I don’t know if this is hereditary or learned, but we are all guilty of trying to take that item that we had to have so badly, even after we where told to leave it alone. We also have a need to fit in. Persons that are counterculture are less likely to try very hard to fit in, but often end up setting the slate for the rest of us that fall into normal. Lastly, I believe exclusivity can offer people the opportunity to be part of something unique, like a club or league. Not everyone can run out and purchase the most expensive vehicle or designer handbag, but when we see someone who can, we instantly believe that person must be part of a higher social standing.
Exclusivity aims directly at the psychological state of the market. The scope of each business will differ and their intended customers must remain happy with the price, the product, or both. Sometimes, individuals are tricked by the market and make purchases without even knowing what they have bought, just to be part of that distinctive group. You can see this in the recent years with Apple products. Many people own Apple’s products and feel great that they do, but they are unable to tell you exactly what about that product made them pay so much more than the other industry prices for like items.
Senk says that shopping is largely entertainment. Do you agree or disagree with him? Explain your answer. I agree and disagree with Mr. Senk. There are different forms of shopping and each has it’s own purpose. I think that going to the store for necessity items like grocery items, cleaning supplies and such is not entertainment at all. This is something that has to be done and is usually a nuisance for my family. I agree with him if we are talking about buying items that are not required to live. Like buying a new car, a pair a jeans, shoes, or any other item just because I wanted it. This type of shopping is completely entertainment because if you do not need to have that product then why are you buying it? Simply because you want it, because your mind is telling you that you need it, or simply because you where looking for something to do.
References

Kelly, M., & McGowen, J. (2010). Business: 2010 custom edition (2nd ed.). Mason, OH: South-Western Cengage Learning.