Massimo Dutti Case Study

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1). Target market segment

Massimo is targeted at young married men and women, who age is 25-50 years old. They are white-collar workers who earn more than $ 3000 / month. They believe in being environmental friendly and use a lot of green products. They like fixing brand.

The customer is urban, elegant, and contemporary who are not only looking for the very latest trend, but are also loyal to the label and share our pride in its values (Massimo Duti, n.d.).

2). Marketing Mix

Product

The first is about the brand concept Massimo men's elegant, now they expanded the range of products: There are women, children and accessories which style is refined elegant. The clothes are used high-quality materials, such as cashmere, silk, wool and cotton (massimodutti, n.d.)

Price

Massimo Dutti's price is relatively advantageous. Their men's price of around $ 115-850, while the women look relatively cheap, at between $ 115-300 (Sim, 2011). In the fast fashion industry, compared with the G2000, Zara, Mango and so on, refinement and comfort fabrics of its clothing are better than other brands. Their Then with luxury brands, they have the same quality, but the price is relatively low.

Place

Massimo shops are located in the city's best location. In Singapore, it located in Ion, Liat Tower, Ngee Ann City, Marina Square, which are upscale areas. These areas have a lot of traffic and people, and have relative success of the business environment. In store renovations, Massimo’s decor consistent with brand style. The Dark wooden floors, soft lighting and elegant shelves. Individual room or areas for have a comfortable space design for customers (Sim, 2011).

Promotion

In advertising strategies, Massimo will use top models to show clothes, which expression the brands of first-class. Their advertisement campaigns appear in international magazines. But they do an important way of advertising is word of mouth. Their website and Facebook are typically used for things that update fashion catalogues and inform upcoming events. Massimo has affinity card which can be used in all the brands owned by Inditex, but only in Europe (Sim, 2011)

People

The staffs of Massimo will go through a series of training to known how to serve the customers. They believe that efficient and personalized customer service coupled with its fashionable and good quality products will win the trust of customers.

Processes

Massimo's process is direct selling way, which begin to design clothes, then to the Inditex in-house brand stores, next is to the each store of Massimo, finally sell directly to customers. Now, Massimo developed a proprietary APP, customers also can direct orders in Massimo's official website.

Physical Evidence

Massimo’s evidence is their “showcase”, which is a good evidence for customer. It can influence customer the mind of buy.

2.2 External Analysis

2.2.1 P.E.S.T.L.E Analysis

Political- Singapore also is a multi-cultural country, so that considering political factors cannot be avoided. Its political is relatively stable and open, which have a great acceptance in the whole market for fast fashion brands. (Essays, 2013).

Economics- Singapore is a country of economic development and trade freedom. The economic foundation laid the fast fashion industry has a good market in Singapore, which means the improvement of people's living standards. The brands want to consider the price and design of new positioning, which let them better integrate into the Asian market (Vinter, 2014).

Social cultural- In the fast-fashion market in Singapore, as multi-ethnic and multi-cultural blending, which make the fashion circle become diversification. When designer making clothes for customers, they will based on different social backgrounds to change program, which research the total market consumers tastes and preferences (Vinter, 2014).

Technological- Now the Internet has become more popular fashion choice. Build online communities, use the content of user-generated, and introduce a virtual dressing room, these types of innovations help consumers establish they want to buy. Fashion sites will more effective participation with customers through better product image (Essays, 2013).

Environmental- All brands activities are undertaken with total respect for the environment, supporting the conservation of biodiversity and the sustainable management of natural resources (massimodutti, n.d.).

Legal- Each country has different regulations textile materials, when the major brands in the design of products to pay attention to: Do not use illicit materials, which avoid legal conflicts with countries (Essays, 2013).

2.2.2 Porter’s 5 Forces

Threat of New Entrants: High Threat

In the fast-fashion market, new entrants' threat is high. The annual trend is almost different, even some niche fashion brand may become hot suddenly. When the number of new fashion brands to enter the market, its unique style attractive price, the same industry will cause some pressure. Each new brand has a market competitiveness in the market.

Bargaining Power of Suppliers: High Threat

The fast fashion industry’s suppliers located around the world, mostly in Asia and Africa. One of the most important trends change is adaptation suppliers operating in low-cost areas. Labour is the biggest factors. India, Vietnam and China are the three countries of cheap labour, but in recent years, China’s labour costs are significantly increased, which will be ready to change suppliers (Essays, 2013).

Bargaining Power of Buyers: High Threat

The customer is a key of selling in retail formats. Customer purchasing power and willingness will influence the product prices and sales. The customer will be compared to similar several brands, select the best one that the brand. Most customers are highly mobility (Essays, 2013).

Competitors Rivalry: High Threat

In the fashion retail market, competition is a very important