...Urban Outfitters Continuing Case Study: Marketing a Business Jason A. Knight August 21st, 2011 Professor A. Garabedian 1. Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. Urban Outfitters can be credited for successfully creating a trendy counterculture image. They have been able to do this by targeting specific markets in key areas and locations, offering exclusivity, and promoting a certain lifestyle. Sears and Wal-mart have both established themselves as being highly successful and profitable business chains. However, even though these large chains have established themselves as strong contenders in the retail market Sears and Wal-mart cannot effectively create a trendy counterculture image. Sears and Wal-mart lack the ability to offer exclusivity and the ability to target specific markets. Both chains are just simply too large. Even though there are Urban Outfitters locations worldwide they still manage to offer a very specific selection of items on a small scale to accommodate the social and socioeconomic demographics of the area in which they are located. You can find a sears or Wal-mart in virtually every state in the U.S. and find the exact same broad range of products. There is really no differentiation, nothing that sets the stores apart. Literally just anyone has the ability to shop in these places and offering such a broad range of products, including groceries, clothing, and electronics attracts a wider range of people...
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...Urban Outfitters Continuing Case Study Part 4: Marketing a Business 1. Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image. Wal-mart and Sears in large part created the idea and foundation for the thinking of bigger is better. How can they try and cater to the little man or sub-culture when they are the very corporation that killed the little man. The basic principles of a sub-culture are to go against the “norm”, and Wal-mart is one of the largest examples of the corporation normalcy. Therefore, the reasons above would be by answer to why they cannot effectively create a trendy counterculture image. 2. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. Of course they do in my opinion! Big box stores always take a look at what the market around them is selling best and most of (the trends), anything from clothing to kid’s toys or apparel or even house hold items. The big box store creates a cheaper, less quality product that they mass produce for less. For example, the latest fad for children even young adults is “silly bandz” (rubber bracelets that pop back to their original shape when you take them off, they have animal shaped ones, Disney themes, etc..). Now you see them everywhere but they are called something slightly different from the original brand and are most likely made of cheaper rubber as well and sell for less. Thus in my opinion how the big box stores cater to the “middle...
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...Urban Outfitters Continuing Case Study Part 2 1. Setting up a new business can be a tumultuous task. Order, timing and planning is key when trying to execute a successful business. Even though you might have an excellent idea without proper execution a business can fail. It is imperative to understand that starting a business is not easy and conducting your own research, heeding the advice of experienced business owners and seeking other organizations and resources that help small business owners are key steps in addressing these challenges. - Financing. Does the owner have sufficient cash to fund the opening of the business as well as its ongoing operations? Many times the owner has enough financing to open their doors but they run into cash flow troubles and end up losing their business because they have failed to consider that the business has ongoing cash flow requirements. Excess growth can be a factor, and financing limitations can hinder growth, or growth can outstrip financing and cause a liquidity crisis. - Securing an Appropriate Location. In retail, location can be a deal maker or a deal breaker of the success of the firm. The type of product can have a big impact on the appropriateness of a given location. For example, in the Urban Outfitters case, the owners decided at first to focus their store openings near college campuses where young people looking for trendy fashions would tend to be in close proximity. - Legal Issues: Patents and trademarks must be...
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...Urban Outfitters Continuing Case Study: Marketing a Business 1. Explain why Sears or Wall-mart cannot effectively create a trendy counterculture image. Sears and Wal-Mart do not solely devote time to the fashion business. They sell clothes because it is a necessity everyone has and to make money. That is their main goal. In doing so, they are like a high school teenager. They see a fashion trend in the magazine or in their case, big corporation see what the leading fashion industries are buying and follow suit. Then they mass produce that look, using cheap materials and most of the time the craftsmanship is poor. People interested in being trendy want to make a statement about who they are and are out and be different. The clothes sold at Sears and Wal-Mart is available to everyone and is not in any way unique. 2. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. Wal-Mart and Sears are unable to sell merchandise identical to Urban Outfitters because they mass produce there items and the clothes are often poorly made with low end quality material. They focus more on quantity instead of quality to meet the highest profitability. Urban Outfitters sell their merchandise for a higher price and sell a smaller amount of items to turn a profit; Sears and Wal-Mart must sell a significant amount more to make the same profitability. Also, Urban Outfitters makes sure they have the current trends, Sears and Wal-Mart stores are...
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...In “The Hanover Insurance Company v. Urban Outfitters, Inc”, the Navajo Nation had sued Urban Outfitters for infringement of its trademark, with the complaint alleging that the infringement had taken place since 2009. It is noted that Hanover, on the other hand, had offered Urban Outfitters commercial general liability insurance cover from 7th July 2010, a coverage that encompassed advertising and personal injury. This policy, however, excluded liability emanating from written or oral publication of material that was first published prior to the start of the policy period. A District Court in Pennsylvania ruled for Hanover’s motion that the “prior publication” exclusion was encompassing the resultant injuries given that the alleged injuries had...
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...Urban Outfitters Continuing Case Study: Creating a Business Steve Jobs Introduction to Business Professor Mariatta Lewis July 31, 2011 Urban Outfitters Continuing Case Study: Creating a Business Starting a business can be very challenging. There’s always a positive and negative side to it and it’s not always easy. Entrepreneurs and business owners will always over come different challenges when setting up a business. Finances, location, and finding a good staff is all linked together but can be challenging when opening up a business. Finances have a big part to opening up a business. You will have to find the right lender and see who has the best interest rates for business loans. For example, if I was to start up my own restaurant I will need money to buy or rent a facility, buy restaurant equipment, or buying the food. First I will have to sit down and set up a business plan and see what is within my budget. If the bank qualifies you for a $100,000 loan you know that is your budget. Figure out what you need to get for the business, find the location, and hiring a staff. A good way to budget is find stores that sell cheap items and buy things in bulk. Budgeting money can be very challenging because when you have that large lump sum it’s easy to just buy whatever you see. So as a new business owner plan out what you need for the business and budget the money you got. Finding a location can be very challenging. Explore your options to see if it...
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...Urban Outfitters Continuing Case Study Part 2: Creating a Business Identify 3 challenges when setting up a business. Explain why they are challenges. Since we live in such a technological age, customers can surf the web 24 hours a day and seven days a week, looking for the lowest price available. So, it will be up to the business owner to market a quality and unique product that will spark the interest of customers and will ultimately encourage them to buy. Considering the last few years that our nation has been in a recession, housing and banking loans have been very difficult to obtain, so I’m sure it’s just as difficult to get approved for a business loan. Also, being a new brand or business, banks may also be less inclined to give out credit. So, it will be a huge challenge to the available funds to start a business. Being able to persevere during the rough times, it’s all on you. Being an owner, you will have to be 110% invested mentally and physically, but also be motivated to take on every challenge that may arise. Whether it be uninspired employees to possible a natural disaster damaging your business. The way you handle each obstacle can make or break your business. Define what a “niche” product is. Give at least 3 examples. A niche product is a product made and marketed for use in a small and specialized group. The iPad, BlackBerry Torch and Taylor Made Burner Irons are three examples of a “niche” product. Explain why a niche company might have...
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...Unlike other retailers, Urban Outfitters’ marketing nearly begins and ends with the shopping experience itself. The company does little if any advertising, in print or otherwise. Nearly everything rides on producing a unique experience. Urban Outfitters has been a consistent winner with tight marketing and storefronts that completely set it apart from other retailers. Typically a niche company finds a narrow category in the broader industry where it can outperform larger retailers. Once the consumer is singled out and approached with the right sort of attention, that consumer will respond to the brand. For Urban Outfitters, this meant understanding the psychology of a very specific group of customers and then doing something a big retailer literally could not do: be small and exclusive. But Urban Outfitters did it on a not-so-small scale and without much traditional marketing. From the beginning, Urban Outfitters used location, the shopping experience, and a certain sense of fashion to sell to people who were somewhat counterculture and certainly not looking for conformity. Originally thought of as the “hip” college crowd, the typical Urban Outfitters’ customer is looking for a sense of differentiation. By all indications, this conception was accidental; when Hayne opened his first 400 sq. ft. store, he probably had no illusions of “chipping away” at JC Penney’s or Sears’ market share. All the same, Hayne essentially invented a category, and discovered that his customers...
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...Urban Outfitters Continuing Case Study: Marketing a business Deborah Riley Dr. John H. Carter BUS100 – Spring/2010 May 30, 2010 Question #1 - Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. In my opinion I don’t think that Wal-mart would be able to create a trendy counterculture because it sales clothes at a lower price. Trendy clothes would not be effective for them because the cost associated with trendy clothes would not be profitable. Wal-mart shoppers are looking for a bargain when they go shopping at their stores. Wal-mart is known for their lowering prices on items in their stores called the Roll Back Price. “Wal-Mart said last week that it is stepping up price cuts, although it wouldn't specify how much it is boosting its typical weekly discounts designed to lure customers.” (Anderson, 2010, para 2). They also buy their merchandise in bulk as oppose to small quantities. While Urban Outfitters buy their merchandise in smaller quantities and there items are priced higher which is why they can create a trendy counterculture. When speaking of Sears they are not on the same line as Wal-mart considering they do not offer their customers price cuts such as roll back prices. But they do buy their merchandise in larger quantities then Urban Outfitters. Sears prices are high when compared to Wal-mart but they offer designer labels that are not offered at Wal-mart. But they also mass produce...
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...Urban Outfitters Continuing Case Study 4 Marketing a Business Felicia Lee Introduction to Business BUS 100 May 30, 2011 Abstract Marketing is a process which a company draws potential consumers/customers’ interest towards its goods and services. This process involves activities such as research, promotion, selling and distribution. Urban Outfitters, Inc caters to the exclusivity, uniqueness, and distinctiveness of fashion to maintain their customer shopping experience entertaining, while Wal-Mart is considered a big box store. Obtaining an understanding “why” shopping is entertainment and therapeutic to consumers. Explain why Sears or Wal-Mart cannot effectively create a trendy counterculture image? Counterculture is a way of life and set of attitudes opposed to or at variance with the prevailing social norm (Oxford Dictionaries, April 2010). A creation of a counterculture by Wal-Mart or Sears might not succeed because of different reasons that play a huge role in the marketing techniques or tactics used by Urban Outfitters, Inc. Urban Outfitters, Inc. utilizes niche marketing and exclusivity as their main marketing technique or tactic while Wal-Mart and Sears are considered as large scale American department stores located throughout the United States. Unlike Wal-Mart and Sears...
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...Identify at least three challenges when setting up a business. Explain why they are challenges. Three challenges a business owner would face when setting up a business are visualizing possible risks, low ambition, and inadequate revenue. Starting a business in itself, is a huge risk. A business owner has to take into account the rewards of a business, but more importantly potential setbacks. The fact that business owners create the mindset that things may not always go the way they plan, will aid them in bouncing back from any setbacks they may incur. If business owners plan on succeeding and not preparing for any hindrances, they will be far less likely to succeed and be able to bounce back from any stumbling blocks. With visualizing risks, you also have to take low ambition into play. If a business owner has any issues with the business, they may start to lack ambition, and it will affect anyone else that is involved with the business. Inadequate revenue stems from business owner basically setting goals based on what they are accustomed to. When you go into business for yourself, you have to realize that you may not make as much as you made before the transition into becoming a business owner. Economic conditions play a major part in this, so you need to make sure you have sufficient fall back money if you are unable to net the income you need in order to maintain your current lifestyle. Define what a “niche” product is. Give at least three examples...
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...Urban Outfitters Continuing Case Study Part 2: Creating a Business Anna Hall Dean Carol T. Williams Introduction to Business – BUS 100 July 26, 2010 Creating a Business There are many challenges when starting up a business such as lack of funds, finding the right location, and establishing a customer base. Funding a new business can be one of the biggest challenges because most people do not have enough money saved up to start a business especially if they are young and just starting out themselves. Trying to get funding from a financial institution can be very difficult, therefore it is best to figure out how much it is going to cost to start a business. It is always a good idea to have a financial plan before starting a business; otherwise the likelihood of the business being successful is slim. If the business is going to be a retail store, finding the right location is very important. It is important that the store is visible from the street, and that it has easy access from the street for both automobiles and pedestrians. It is also important to look at the amount of traffic in the area that the retail store is being considered. It certainly would not make sense to put a retail store out in the middle of nowhere. Establishing a customer base is very crucial to the success of a business. Without customers a business will not have any sales, and if a business does not have sales it cannot survive. Doing some light advertizing is one way to start getting...
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...out to a potential customer base. If people are unfamiliar and/or unaware of your company and services that you are offering to provide, they can’t contribute to the growth of your business. Creating an attractive, user friendly website is a great way to gain exposure and attract a new customer base. But most of the time, a company needs a sales force to reach out to its customer base so that the customers feel that there is personal interaction and that their business is valued and appreciated. A fourth challenge is determining where the prime real-estate would be for establishing the customer base and allowing for internal growth. (Internal growth referring to physical expansion needed due to growth in revenue.) For example, Urban Outfitters chose to locate close to colleges and this worked to their advantage. In Industrial...
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...URBAN OUTFITTERS CASE STUDY 1 Urban Outfitters Case Study: Marketing a Business Bus105 March 7, 2010 URBAN OUTFITTERS CONTINUING CASE STUDY: 2 Urban Outfitters have created an image and market like no other. Urban outfitters has exceeded the normal niche size companies; they have hundreds of stores worldwide. Explain why Sears and Wal-Mart cannot effectively create a trendy counterculture image. In order to have a counterculture image, a company must cater to the culture and lifestyle of those people, especially among the young, who reject or oppose the dominant values and behavior of society. Most stores that have a counterculture image sell exclusive items. Wal-Mart and Sears are huge retail stores; they carry an abundance of each item and cater to everyone. If they became a counterculture image store, they would exclude too many people and risk having to close stores in certain areas. Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer. It wouldn’t be a wise decision for the big box stores (Wal-Mart, Target, JC Penney’s, etc...), to sell items identical to Urban Outfitters. Urban Outfitters originally catered to colleges and university students, and they choose store locations near those places. Most of these big box stores adjust to their changing market and are located on or near major highways. Even if...
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...URBAN OUTFITTERS STUDY ON MARKETING A BUSINESS Angelena Johnson Professor Kelly BUS 100 November 24, 2010 Through out this report it shall discuss the ways of marketing a business and how marketing will help to make a business grow and flourish. However, client and sales are what make you a success; therefore successful marketing steps must be done. This report shall also discuss the reason why Sears or Wal-mart cannot effectively create a trendy counterculture image. As well as discussing if the big box stores sell merchandise identical to Urban Outfitters? This report will also identify and discuss reasons why exclusivity is valuable. Lastly this report shall discuss the feed back on Senk saying that shopping is largely entertainment. This report will then conclude these discussions and making them clear of Urban Outfitters study of there marketing process. Introduction “Our success is a direct result of knowing how to market a brand and having the right people representing the brand” (Norman, 2009). Marketing is a key element in the success of any business. Urban Outfitters on the other hand has a marketing strategy that is as unique as the experience it sells. Urban Outfitters is a retailing company with a business portfolio that includes the store brands Anthropologies, Urban Outfitters, and Free People. The difference between Anthropologies from Urban Outfitters target is that they focus on women that are older and Urban Outfitters focus on...
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