IOP3704
ASSIGNMENT 4 SEMESTER 2 2024
,IOP3704
Assignment 4 Semester 2 2023
DUE 6 November 2023
Compile a strategic report for GALXBOY on how they can approach the following
elements:
INTERNAL ENVIROMENTAL ANALYSIS
No. Mark
1 Conduct a SWOT Analysis for GALXBOY where you are focusing on identifying the
company's strengths, weaknesses, opportunities, and threats in relation to its
marketing efforts. (No marks will be awarded for theoretical explanations; two marks
awarded for the practical application of each dimension.) (16)
MARKET ANALYSIS
2 Identify and define THREE (3) potential and distinct target markets for GALXBOY
and use the following three bases of segmentation: demographic, psychographic, and
geodemographic to segment the market. (No marks will be awarded for theoretical
explanations; two marks awarded for the practical application of each base discussed
under each dimension.) (24)
SUSTAINABLE COMPETITIVE ADVANTAGE
3 Propose a differentiation strategy for GALXBOY on how they can set themselves
apart from competitors. Focus on the following elements: product, distribution, price,
promotion, and branding.
,ANSWERS;
INTERNAL ENVIROMENTAL ANALYSIS
SWOT Analysis for GALXBOY:
1. Strengths
- **Strong Brand Identity:** GALXBOY has built a recognizable brand with a unique
and edgy style that resonates with its target audience. This brand recognition can be a
significant asset in marketing efforts.
- **Product Innovation:** The company is known for its innovative and trend-setting
designs, which can differentiate it in the fashion industry and attract a loyal customer
base.
- **Social Media Presence:** GALXBOY has a substantial social media following, which
can be leveraged to create engagement and brand loyalty.
- **E-commerce Platform:** The online store provides a convenient shopping
experience for customers and allows for global reach.
2. Weaknesses
- **Limited Product Range:** GALXBOY's product range is relatively limited, which may
limit the target audience and market penetration.
- **Quality Control Issues:** Some customers have reported quality issues with certain
products, which can affect brand reputation and customer trust.
- **Overdependence on Trends:** Being overly reliant on fashion trends may pose a
challenge if the market shifts in a different direction.
- **Limited Physical Presence:** GALXBOY primarily operates online, which can limit
customer interactions and opportunities for offline marketing.
3. Opportunities
- **Global Expansion:** There is an opportunity to expand into international markets,
capitalizing on the brand's appeal among a diverse range of customers.
- **Sustainability and Ethical Fashion:** The increasing interest in sustainable and
ethical fashion presents an opportunity for GALXBOY to align its products with this
growing consumer trend.
- **Collaborations and Partnerships:** Collaborating with influencers, artists, or other
fashion brands can help expand the brand's reach and visibility.
- **Diversification:** Expanding the product line into different categories like
accessories or footwear can help attract a broader customer base.
,4. Threats
- **Intense Competition:** The fashion industry is highly competitive, with numerous
brands vying for the same customer base, making it challenging to stand out.
- **Economic Uncertainty:** Economic downturns or global events can impact
consumer spending on fashion items.
- **Supply Chain Disruptions:** Issues with the supply chain, such as delays or
increased costs, can affect product availability and profitability.
- **Changing Consumer Preferences:** Rapid shifts in fashion trends or changes in
consumer values can affect the company's ability to stay relevant.
In summary, GALXBOY possesses strengths like a strong brand identity and product
innovation, but it also faces weaknesses such as limited product range and quality
control issues. The company can capitalize on opportunities like global expansion and
sustainability while addressing threats like intense competition and economic
uncertainties. This SWOT analysis can serve as a foundation for GALXBOY's strategic
marketing efforts in the coming months and years.
,
,ANSWERS;
MARKET ANALYSIS
GALXBOY is a streetwear fashion brand, and to identify and define potential target
markets for them using the three bases of segmentation (demographic, psychographic,
and geodemographic), we need to consider the characteristics, behaviors, and locations
of their potential customers. Here are three distinct target markets for GALXBOY:
1. Target Market 1: Streetwear Enthusiasts
- Demographic Segmentation:
- Age: Primarily aged 16-30, with a focus on the younger demographic who are more
inclined towards street fashion.
- Gender: Predominantly male but also appeals to females.
- Income: Middle to high-income individuals who can afford premium streetwear.
- Psychographic Segmentation:
- Lifestyle: Fashion-forward individuals who are trendy and want to stand out.
- Attitudes: Those who value unique and edgy clothing that expresses their
personality and individuality.
- Interests: People interested in urban culture, hip-hop, street art, and urban fashion
trends.
- Geodemographic Segmentation:
- Urban and suburban areas of major cities where streetwear culture is prevalent,
such as New York, Los Angeles, London, Tokyo, etc.
2. Target Market 2: Skaters and Extreme Sports Enthusiasts
- Demographic Segmentation:
- Age: Typically younger, ranging from 15-35 years old.
- Gender: Predominantly male, but there's also a significant female market.
- Income: Varies, but often in the middle-income range.
- Psychographic Segmentation:
- Lifestyle: Active individuals who engage in skateboarding, surfing, or other extreme
sports.
- Attitudes: Seek functional and stylish clothing that suits their active lifestyle.
- Interests: Passionate about extreme sports, music, and subcultures related to their
sports.
- Geodemographic Segmentation:
- Concentrated in areas with skate parks, beaches, and extreme sports communities,
often in coastal cities and towns.
, 3. Target Market 3: Music Festival Goers and EDM Fans
- Demographic Segmentation:
- Age: Primarily 18-35 years old, with a strong focus on the young adult demographic.
- Gender: Fairly balanced between males and females.
- Income: Diverse income levels but with disposable income for leisure activities.
- Psychographic Segmentation:
- Lifestyle: Fans of electronic dance music (EDM) and frequent attendees of music
festivals.
- Attitudes: Value expressive and flamboyant clothing to make a statement at
festivals.
- Interests: EDM culture, music, and the social experience of music festivals.
- Geodemographic Segmentation:
- Presence in regions known for hosting music festivals, such as California's
Coachella Valley, Las Vegas, and various European cities that host popular festivals.
By segmenting their target markets based on demographic, psychographic, and
geodemographic factors, GALXBOY can tailor their marketing strategies, product
offerings, and brand messaging to better appeal to each of these distinct customer
groups. This approach will help them maximize their market penetration and connect with
consumers who resonate with their streetwear products.
