[DISTINCTION] BTEC Business Studies Unit 2 Developing a Marketing Campaign Decreal Gear (was marked by teacher)
Marketing campaign on the company Decreal Gear. Great as a format that shows you how you write a marketing campaign for your exam! At a super Cheap and affordable price.
Unit 2 – Developing a market campaign
Activity 1 – preparing a rationale for a market campaign for decreal gear.
Overview of industry:
The Decreal sportswear market is a very large market in the UK, set to achieve a market growth of
29% by 2025. As shown by global data. The estimation is that £7 billion will be spent within this
market alone. Thus, allowing great opportunities for this market. This Huge growth is set to be
higher than all other retailers on this level, so its already not a niche.
The chosen option which I think will have the best impact on Decreal’s sales is option 2 the loyalty
scheme and that there are many benefits which I will cover in this report through making a
marketing campaign on the many opportunities that are available in implementing this option.
Marketing Aims and Objectives:
1. - The first marketing objective Decreal should consider implementing into the business is a
loyalty scheme of which for every 2 purchases someone makes they receive a discounted
price of 20% on their next piece of clothing and gear. This should run over the next 7 months
(28 weeks) of which the last 2 weeks the discount should change to 25% for the clearance of
stock. This can be proven successful through the rise in companies like Decreal gear offering
discounts on average of around 48% to students, apprentices, fitness industry workers and
other key customers. In theory this will almost double profits from around 60% to 100%
across these 7-8 months and those regular reviews/observations will be made on profits
across each month.
- In addition to Decreal should hire people who monitor purchase logs, popular items which
are being sold measuring every sale made to ensure that there is a market to be penetrated
and that there is a demand for products sold by companies like Decreal gear and profit to be
made. Looking at part B of the research pack I can see that Decreal is already 15-25%
cheaper than its bigger competitors which will help with stimulating demand and brand
awareness leading to increase of sales. Delving deeper into the wider market you can see
that there is room for smaller independent competitors who want to overcome brands like
Decreal gear who sell directly to customers online and clothing retailers. There being a gap
in the market for smaller businesses such as Decreal gear should be an opportunity for them
to thrive in using this objective should give the business to chance to hold a bigger share in
the market through the increase sales, profits, revenue, and size of their customer basis.
Furthermore, the uk having predicted to achieve a growth of 21% reinforces the profit
margins above implying that there is a demand for the product and services. Thus allowing
Decreal Gear to see growth in using the loyalty scheme alongside this the loyalty scheme a
way in which more popularity can be gained into the business is to introduce a bonus
monthly for instance for customers who shop their often 5 or more times in a span of 4
weeks will receive 30% cash back on their next month’s first order for instance averaging the
clothing prices of Decreal, to around £25.
- Another marketing objective which will aid the increasing of revenue is to increase the
brands awareness by putting it out there on social media, being worn by influencers and
talked about by people known in the area, by the public. Alongside putting it out there with
its competitors to attract new customers will be one of the major contributing factors to
increase in sales following through to loyalty of customers and brand recognition either
through word of mouth or just general targeting of specific customer needs. A way in which
, this can be measured on effectiveness is through holding more stock in warehouses to see if
they are being limited by stock and not their customers should they have to stock up will
show their limitations on why they haven’t been progressing. This will run reinforcingly
across the first 4 months of which it will be reviewed and then continued for the remaining 4
months to see if it is having a positive effect on customer gains inside the business.
Understanding the larger market with the bigger competitors such as JD sports, Sports direct
you can see there is room for improvement of which isn’t seen as a priority by these larger
companies but is a must for businesses like Decreal Gear as these customers want
something specific and unique to the usual mass-produced stuff sold by larger businesses
willing to purchase at a premium price for an experience, satisfaction. Furthermore, the uk
having predicted to achieve a growth of 21% reinforces the share above implying there is
growth in the market of which Decreal need to source and identify. This can also be seen in
the rise in participants in sports such as Running, fitness classes, general fitness and that
Decreal Gear has the opportunity by specialising in sportswear clothing.
- The final marketing objective I would recommend including is to increase the sign ups and
subscriptions by 5% across the 7 months and 2 weeks allocated using keeping customers
attached to the business through recurring monthly payments of which they receive a
benefit every week or a few bonuses at the end of the month based off of their spenditure.
This can be further excelled through the Decreal promoting on their website to target those
who want train and workout from home and who may want to use a website to order
clothes in which they will use this opportunity to advertise their loyalty scheme. This will
allow Decreal Gear to monitor the amount of people accessing these sites and get a bigger
picture into whether their business should shift into an online market seen through a 55%
rise in online purchasing of clothes let alone this figure not including the online subscriptions
and using of app services for instance Loyalty schemes. Decreal should hire a 3 rd party
company or a website designer and assign the role to create a website whereby it will only
be open for a set amount of time in this instance every month will have a goal of around 5%
(55-60) people and can only run if they meet a goal of 400 potential customers over the span
of 8 months allowing the business to monitor whether or not they should spend the money,
time and effort in the long run to keep it running. Concluding the wider market, you can see
that in 2020 the sales of men’s sportswear grew by 18% whilst women grew by 43%
suggesting there is money to be made. This should have a positive impact on the businesses
survival rate as said there are many brands using social media to build customer
relationships. And that this will filter down to a rise in customers wanting to order more then
once and increase their overall loyalty.
Target Market:
Decreal gear have a target market of ages 20-35 as this is slightly broadened by the initial target
market of 25-35 which could have limited their customer basis. This is said by the business
themselves which is proven reliable cannot be proven otherwise as their research done on 100
people in the city centre shows information about the customer rather than age and is an unrealistic
sample size of 100 people in the most populated part of the city.
Size, Structure and Trends:
Decreal Gear is setting up their business in a market which is in the growth phase and has a lot of
potential as said in part A: By 2023, the market for sportswear in the UK is predicted to achieve a
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