INTRODUCTION
Company Introduction
Set up in 1991 by Johnnie Boden, “Boden” is an exceedingly popular British form mark surely understood for its one of a kind extravagant dresses and cotton shirts. At first the brand was just centered on men’s wear and inevitably ventured into children, adolescents and ladies’ clothing. When setting up the organization, Jennie’s point was to convey morally sourced excellent garments to UK. Despite the fact that the organization needed to encounter a testing venture amid the main decade of its activities, by 2000 Boden had turned into a famous garments mark inside the UK. Amid a similar time, web and data innovation was upsetting the majority of the organizations. Having ruled the mail list showcase, Boden likewise embraced IT into their business tasks amid this time. Thusly in 1999, the organization site was launched (Butler, 2013). At this point, as the organization has picked up a specific measure of dependability their next point was to extend the business. In that capacity, Boden extended to America with a site in 2002. Today, 1/3 of the organization’s site deals are created from the US. Inevitably, the brand likewise executed a market advancement system by venturing into new topographical territories, for example, Germany and Australia with sites. Following the organization’s fruitful development, the principal store was opened in London in 2004. Afterward, the organization has likewise ventured into new fragments by offering supportable materials to sections, for example, infant apparel, high schooled garments and maternity wear to understand the potential for development (Hellier, 2015).
1.2. Customer Base
Boden is considered as a top of the line design mark however some see the brand as a dull local brand. Notwithstanding, while considering the client base, it is noteworthy that this isn’t some tea. The majority of the Borden’s clients are rumored people in the general public. Besides, it is surely not the brand for the ones who search for slick attire. It is a garments mark which suites consummately for individuals who are searching for tasteful and nice outfits. A portion of the brand’s clients or big name fans incorporate prominent individuals, for example, Boris Johnson; London’s chairman, Samantha Cameron; spouse of previous UK Prime Minister, Kate the Duchess of Cambridge and Michelle Osama; wife of the previous US president (O’Brien, 2015). In spite of the fact that the brand at first was centered around men’s wear, today Boden holds calm a quality notoriety among ladies in their 30’s or above extraordinarily their image “Yummy Mummy”. The client base is developed and esteems quality and unwavering quality with a touch of design. As far as the pay, normal brand client has a yearly pay of over £70,000 (O’Brien, 2015; O’Brien, 2015). Today following 27 years of activities in the market, Boden has possessed the capacity to develop its client base into 1.6 million.
PEST Analysis for Boden in UK Market
Data gathering in regards to the outer condition is essential critical as this capable organization to make the upper hand for the organization for a supportable long haul advancement. Particularly the Clothing business is fundamentally touchy to the adjustments in the outside condition than numerous different ventures. As clarified the outside condition assumes a basic part in molding the ventures future and also the individual organizations future. To keep the business forward from different contenders and to have the upper hand over others it is essential imperative to know the fringe side of the business that related with the changing natural condition. The basic piece of this is, the directors of the organization must change their present techniques of the business to snatch the current condition openings either to develop the piece of the pie or to be more focused in the current piece of the pie. To do an outer natural investigation for a Boden as an initiator of the apparel idea, the outside ecological examination for the organization is conveyed forward with PESTEL examination, SWOT examination, Porter’s Five Force Analysis lastly the doorman’s five corner investigation with thorough aggressive investigation.
PEST Analysis
Political Environment
The political scene of the United Kingdom is dug in profoundly with the popular government ethos and the steady arrangement of administration that featured the nation’s strength of their political circumstances. The UK political difficulties and the up and coming open doors for the Boden as can be outlined as per the streaming delineated subtopics of Current quality, Current difficulties, Future prospects, Future Risk.
| Current Strength Democratic set up of the country is very strong with effective governance The Country’s Governance system is called Westminster System. The country is one of the most successful nation by applying the rule of law. According to the governance indicators of the year 2015 effectiveness of the countries governance is ranked as 95% (Catheline , 2010). The Country’s position in the Global Economics. UK is one of the major power in global politics as it is a permanent member in the UN Security Council and also have considerable influence to multinational organizations like IMF and World Bank (Peter, 2015). | Current Challenges Immigration policies of the country Regarding the required level of skills that having with the country most of the Clothing managerial staff are under qualified. This affect to the one fine stay as with the future recruitments of the employees for higher position In different taxation policy to the one fine stay with controversial business model affected with the political situation of the country. There are many amendments to the policies related to the UK Clothing industry which restricted the tourists to come and say (Peter, 2015). |
| Future Prospects Stronger ties with India Mutual benefit agreements with India and other South Asian countries will also give a positive impact to the Clothing industry in UK. With most of the countries there will be strategic relationship that enhances the demand side of the UK Clothing industry from new South Asian Markets. Developing Regulators to cover up the sharing economy concept There are hundreds and thousands of rules and regulators to develop and encourage sharing economy concept in country. | Future Risk Terrorism The terrorism seems to be a negative threat to the country’s economy especially for the Clothing and the Clothing industry. The involvement of the war terror of Iraq and Afghanistan still has some of the negative consequences and in future too. |
Economic Environment
United Kingdom is the nation with higher per capita GDP and furthermore extremely positive economic conditions to the speculators and in spite of the fact that the nation is tested by high shortfall and reduces spending. The corporate charges however slice the offer to the goad. The administration of the nation has noteworthy measure of obligation that speaks to the wastefulness to some degree. The money related arrangement of the nation should be reinforced.
Table 2 Economical Environment
| Current Strength Developed economy and good investment culture. The UK economy is one of the strongest and one of the largest economies in the region of the EU. Per capita income of the country is also significantly at very high level in terms of the Purchasing Power Parity. Excellent Business Environment According to the Doing Business Indicators in world bank the country is in the 7th place. Also ranked as in the first place regarding the easiness of getting credit facilities (Ebenezer & Asiedu, 2013). Country has open and competitive economic culture. The international business view of the country is very favorable. Hence it is good factor for the development of the Clothing and Clothing industry. Also the country is having a very good knowledge economy environment. The World Economic Forum 2014-2015 ranked UK as 8th place based on the competitiveness which is full of professionals and skilled employees. | Current Challenges High Debt The government of the UK has significant amount of debt and it now reached the alarm bell of the country as 90% of the GDP. As same the country’s economy is passing through the recession period it is difficult to cope up with the debt and ultimately it impacts to the development as well as emerging industries like Clothing and Clothing. Fiscal Deficit In year 2015 the overall fiscal deficit is 11.5% per year. The austerity program was extended to 2017–18 as the economy is struggling to recover. The target deficit was revised to 2.2% of GDP by 2017–18 in the 2013 budget. Progress was made in 2010, with the deficit dipping to 10.2% of GDP; the figure was 7.8% in 2011 and 6.3% in 2012. The 2013 budget though, has forecast a deficit of above 7% of GDP in 2013. Cutting the budget deficit amid stagnant growth is a big challenge for the government (Wilkies & Brayshaw, 1998). |
| Future Prospects Corporate Taxes The corporate tax rates will be cut down to the 23% and it will be reduced further to 20% in near future so the Boden can have the benefit of it. This is the lowest possible tax rate in G 20 countries. This will make the country as one of the most possible place to invest. Since Boden has the capability to grow more. | Future Risk High Indebtedness High indebtedness of the households of the UK reduce the purchasing power of the customers. Hence there will definitely be a reduction in number of customers although it increases the number of hosts. |
Social Environment
Inhabitants of the United Kingdom tend to expand the way of life condition with contrasted with the other advancement nations. The training, living condition, wellbeing arrangement of the nation positioned best concurring the won global measures.
| Current Strength Strong education system and health care system. The Strong educational system and the strong social system provide goods healthy life style to the personalities and ultimate increase of the life style of the people promotes better clothing | Current Challenges Less household income The house hold income lower than 60% of the median national income. The child poverty further tends to be increased in future too. Dependency Ratio Dependency ratio also tend to be increased in 16.5% in 2020 to 24.6% 2060. Hence the majority of the population is depending with someone else for their needs. This will give negative impact to the Clothing industry of the country as people don’t have money for spend on leisure. Increase in Living Cost With the increase of the living cost the people desired to purchase low cost products but higher standards are expected with. As the Boden targeted for quality service at a premium price the company is sometimes not matched with the current expectations of the customer specially with their premium cost. |
| Future Prospects Survey conducted by Visit Britain identified below mentioned are the social factors that influence the Clothing sector of the country. Especially on the customer’s preference will be shifted to purchase strong brand goods and services. Number of Billionaires will be increased at 2020 up to 85%(McCombs, 2014). Number of personalities with high net worth also forecasted to be increased by 50% from 2012 to 2022 (McCombs, 2014) Increasing tendency towards exclusive, personalized, and first-hand travel moving away from the standard Clothing ambience. | Future Risk Aging Population The population of the country seems to be get aged and the seeking needs for leisure activities and travelling desires tend to be decreased. |
Technical Factors
A large portion of the nation’s R and D exercises are in the right way with revise foundation bolster given by the legislature. With the sharing economy idea, the mechanical headways are fundamentally profited the Boden. The pattern for having a patent for a few conditions is currently declined and it expands the mechanical aggressiveness of the nation.
Table 4 Technological Environment
| Current Strength Bestowed the scientific experts Hence the more technological developments are promoted in the country specially in the mobile phone technology and the development of new Apps. The concept of sharing economy and online business transactions of the Boden affected with this in a favorable way. | Current Challenges Shortage of skilled personalities There is a deficiency of the skilled personalities to the country. Hence for the higher management positions of the Boden especially the personalities with IT a skill is difficult to get hired. But the CEO of the Boden commented that it is very much useful the business to be linked with IT skills. |
| Future Prospects Outsourcing The tendency of outsourcing R&D activity to low cost in developing markets has been quite shared for some time though it appears with some disadvantages in short run | Future Risk Declining Patent Application This will be a risk for the company as the company’s business process is now very much associated with the IT processes. Especially Boden has their own mobile apps to the customers. |
SWOT Analysis
| Aspect | Details |
| Strengths |
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| Weaknesses |
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| Opportunities |
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| Strengths |
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Porter’s Five Force Model
Table 5 Porters Five Force Model
| Threat of New Entrants Regulatory compliances are minimal due to the fact that business model is associated with company concept. There will be no need to have a huge capital as to set up with the Clothing as a business. Also there are no associated special exist cost for the Un- Clothing industry. As now the concept is not new there is a higher possibility to competitors to come up with the industry. Generally the threat of new Entrants to the market is High |  |
| Threat of Substitutes Boden is positioned against the high end luxurious Clothing’s as well with the top of the class rental home providers. Since the substitution is not the matter that needs to be attained for, the matter is actually the company should be able to provide unique sales proposition to the customers to the differentiation. |  |
| Bargaining power of the Buyers. Since there are competitors in the field already with successful results the product plus the service is undifferentiated. Buyers of the Industry is totally independence to choose their own way also the industry is associated with low switching cost |  |
| Bargaining Power of the Suppliers. The bargaining power of the suppliers is relatively high as the Boden has to be provided by number of raw materials of the company. Otherwise it is not possible to run the business. Even the luxury type cloth owners are also relatively low compared to the other industries. |  |
| Degree of Rivalry Low switching cost for the customers to move from one party to another create the high competition amongst each other’s in the industry. Easiness of the expansion low storage cost lack of diversity increase the rivalry against each other companies. |  |
Source: Developed by the Author
Segmentation Targeting and positioning
Segmentation
In this area the creator of the investigation characterizes two new targets advertise fragments for the organization with the procedure of legitimate division focusing on and situating approach. In light of this approach the distinguishing proof of the two new target markets will be more compelling for the organization to reach at their pinnacle of the development and the environment of the organization step by step getting to be plainly unique as per the already assessed large scale environment of the Boden.
Market division is the way toward characterizing the market into interesting cuts. Each gathering of the fragmented market comprises of the client who has comparative needs and wants to be fulfilled. So it better to comprehend the most suitable other market fragments than the officially distinguished sections in the given contextual analysis for the Boden. For the most part, the business sectors are partitioned in light of two primary classifications which can be expressed as illustrative attributes division and the behavioral qualities division.
The Male Market for the Boden can be fragmented by beneath specified table to recognize the new reasonable target markets for the organization.
| Geographic | |
| Cities | Major cities of United Kingdom |
| Rural and Urban areas | Over 10,000 Rural Villages Semi Urban Areas Over 20,000 Small Towns Over 50,000 |
| Demographic | |
| Age | 20-34 Years 35-49 Years 50-60Years 60+ Years |
| Family Size | Young- Single Young – Married Young – Married No Children Young Married with Children Older Married No Children Older Married with Children |
| Income | Low (<40,000 p.a.) Lower Middle (40,001-80,000 p.a.) Middle (80,001-120,000p.a.) Upper Middle (120,001-160,000) High (Above < 160,000) |
| Education | School Levers Graduates, Master Degrees PhD Holders. |
| Life Style | Cultural Oriented , Sports Oriented, Outdoor Oriented |
| Personality | Compulsive, Generous, ambitious |
| SBI VALS | Thinkers, Achievers, Experiences, Believers, Strivers, Makers, survivors, Innovators. |
| Behavioral | |
| Occasions | Special Occasions and Special Occasions |
| Benefits | Speed, Economy Quality , Service |
Source: Developed by the Author
Male Market Target – (Psychological Segmentation)
The organization market of Boden can sorted with the psychographic division. In this fragment the purchasers can be arranged as per their identity qualities, way of life, and qualities. Individuals who beforehand classified under a similar statistic fragment can have distinctive psychographic portions. Psychographic portions underscored the significance of the reasoning example of the clients. Indeed, even they are in same instructive level or salary level or else a similar family estimates the reasoning example can be extraordinary. Statistic and the Behavioral division give the clients just the piece of the story that advertisers ought to fundamentally know. In both these sorts of the advertisers doesn’t know why the purchasers are carried on like this. The subject of why individuals do these things is the fundamental vital inquiry that the advertisers should know their answers. Since the market divisions of the Boden additionally finished with just statistic and behavioral divisions it is altogether essential to portion the market with psychographic division. In the market division utilizing the statistic and behavioral it depicts about the mass market. It does exclude any exploring information of the divisions and different senilities of the client.
With psychographic advertise idea the organization can investigations the objective clients premiums, dispositions, sentiments, desires and so forth… The recognizable proof of this goal conduct is more capable than physical statistic. Subsequently the effective division infers the clients of the Boden to have a decent situating of the organization’s image in their brains. From the point of view of the showcasing statistic characterizes what the purchasers of the market generally need to buy though the psychographic characterizes what purchasers really need to buy. These goal practices are substantially more effective than physical statistic inferences.
To perform with the psychographic divisions to the Boden the VALS framework is utilized with eight typologies. This is known as Values, Attitudes and Lifestyles. These each of the three are elusive and gives the clients internal reasoning example as a benchmark to fragment with (Catheline, 2010).
A standout amongst the most mainstream economically accessible characterization for the psychographic division with VALS is the Strategic Business Insights (SBI) structure. At first for this system US natives were chosen with the poll of 4 statistic questions and 35 attitudinal inquiries. These figures are refreshed persistently more than 80,000 reviews for every year (Catheline, 2010).
This system was created in light of assets of the customers and in addition the development of the shoppers in their psyche. The X pivot of the realistic signifies the intentions of the general population while in the Y hub indicates the assets of the general population incorporates the wage, instruction and certainty and so on… these two variables are the natives of meaning the qualities, states of mind and ways of life of the client.
From these eight classifications achievers and the encounters are chosen as two chose target markets for the Boden. The achievers are primarily persuaded through accomplishments of their life. These kinds of the people need to have exceeded expectations execution in their activity parts and additionally their family life. So they require the brands to demonstrate their prosperity through time certainly with great quality. As a Boden is likewise separated themselves with one of a kind experienced Clothing that gives better quality administration than the clients and furthermore one of the esteemed brand. The achievers are high asset customers and meanwhile they generally take after the rising brands. Thus it is imperative vital to keep this class clients without giving them opportunities to leave from the market of Boden. The organization mark dependably should be top in the chose target advertise.
The other chose target advertises section in view of the psychographic division is Experiences. This gathering of shoppers has high assets to buy and for the most part comprises with youthful grown-ups. These kinds of individuals need to encounter the diverse things throughout their life. This customer class loaded with early adopters who require super nourishments, super motels, and marked energetic items.
Positioning (Emotional Positioning Vs Functional Positioning)
From these eight classifications achievers and the encounters are chosen as two chose target markets for the Boden. The achievers are primarily persuaded through accomplishments of their life. These kinds of the people need to have exceeded expectations execution in their activity parts and additionally their family life. So they require the brands to demonstrate their prosperity through time certainly with great quality. As a Boden is likewise separated themselves with one of a kind experienced Clothing that gives better quality administration than the clients and furthermore one of the esteemed brand. The achievers are high asset customers and meanwhile they generally take after the rising brands. Thus it is imperative vital to keep this class clients without giving them opportunities to leave from the market of Boden. The organization mark dependably should be top in the chose target advertise.
The other chose target advertises section in view of the psychographic division is Experiences. This gathering of shoppers has high assets to buy and for the most part comprises with youthful grown-ups. These kinds of individuals need to encounter the diverse things throughout their life. This customer class loaded with early adopters who require super nourishments, super motels, and marked energetic items.
Positioning Map
Positioning of the Boden can be identified as “Up Market Luxury Un Clothing” which places in the Top of the Mind Awareness of customers, which is highly convinced and exceptional experience.
Figure 3 Positioning Map
Source: Developed by the Author
Positioning Statement
“Boden is a reliable up market Clothing marquee that allows experiences and achievers with full of personalized experience”.
Marketing Mix for the Target Markets
The goal of this segment is to build up a proposed system for the advertising and additionally promoting blend for the objective markets in view of mental division as examined in the above segment. The right advertising methodology for the leads the association exhaustively to accomplish wanted goals for the organization. It is basically a blue print of accomplishing the targets of advertising. The promoting blend, then again, dispatches the coveted showcasing methodology in convenient and arranged way.
Proposed Marketing Strategy for the Achievers and the Experiences
The Marketing mix is the general expression of the company’s overall strategy to achieve desired level of targets related to marketing objectives and collection of the tools to represent the overall image of the product or the services. it is obvious from the previous chapters of the study that Boden to identify two new target markets and the company identified based on the psychological segmentation the two groups called as achievers and experiences. Hence the below mentioned marketing mix is customized according to it.
| 4P | Achievers | Experiences |
| Product | Unique experiences for the tired minds that always busy with. Specially customized according to their needs may bring the feeling of comfort to their minds. | Unique experiences for the tired minds that always busy with. Specially customized according to their needs may bring the feeling of comfort to their minds. |
| Price | More personalized experience for a premium price. Easy payment schemes also introduced with the payments from credit cards and the discounts were given too. | More personalized experience for a premium price. Easy payment schemes also introduced with the payments from credit cards and the discounts were given too. |
| Place | online through the website, inquire via an email, Online Travel Agencies (OTA) Offline channels such as offline travel agents, phone calls | online through the website, inquire via an email, Online Travel Agencies (OTA) Offline channels such as offline travel agents, phone calls |
| Promotion | Above the line (ATL) Promotions like TV advertisements and Travel Magazines. Through the line (TTL) promotions. E mail marketing Below the Line (BTL) Google Ad Words Gmail Advertising Google Display | Above the line (ATL) Promotions like TV advertisements and Travel Magazines. Through the line (TTL) promotions. E mail marketing Below the Line (BTL) Google Ad Words Gmail Advertising Google Display |
| People | New staff and the existing staff need to be trained more to achieve the desired level of customer satisfaction. | New staff and the existing staff need to be trained more to achieve the desired level of customer satisfaction. |
| Processes | Further investment of the R and D activities and BPR | Further investment of the R and D activities and BPR |
| Atmosphere of the household Supplying of the interior to get the sensation of luxury living. Use harmonizing gifts such as welcome handouts like a basket full of local fruits or a Remembrance when departing. Dedicated customer service | Atmosphere of the household Supplying of the interior to get the sensation of luxury living. Use harmonizing gifts such as welcome handouts like a basket full of local fruits or a Remembrance when departing. Dedicated customer service |
Source: Developed by the Author
Income Statement for Boden for the Projected Financial Years
| For the year ended 31st March | Year 1 GBP | Year 2 GBP | Year 3 GBP |
| Net Income after Tax | 1,045,000 | 2,229,000 | 2,652,000 |
| Total Cost of Production | 356,000 | 714,000 | 846,000 |
| Gross Profit | 689,000 | 1,514,000 | 1,805,000 |
| Overheads | |||
| Staff Cost | 116,000 | 182,000 | 191,000 |
| Other operating Expenses | 394,000 | 347,000 | 382,000 |
| Administration Expenses | 402,000 | 412,000 | 420,000 |
| Marketing & Distribution | 43,000 | 67,000 | 73,000 |
| 956,000 | 1,010,000 | 1,068,000 | |
| Net Operating Profit/ Loss before Finance cost | (267,000) | 503,000 | 737,000 |
| Finance Cost | 133,000 | 188,000 | 157,000 |
| Net Profit/Loss Before Tax | (401,000) | 314,000 | 579,000 |
| Income Tax | – | – | |
| Net Profit/Loss after Tax | (401,000) | 314,000 | 579,000 |
| Reserves | |||
| Retained Earnings | |||
| Opening Balance | (102,000) | (523,000) | (229,000) |
| Profit / Loss for the year | (401,000) | 314,000 | 579,000 |
| Charged to Reserve | (19,000) | (42,000) | (74,000) |
| Utilization of Reserve | – | 21,009 | 37,000 |
| Closing Balance | (523,000) | (229,000) | 313,000 |
| Reserve | |||
| Opening Balance | – | 19,000 | 40,000 |
| Charged to Reserve | 19,000 | 42,000 | 74,000 |
| Utilization of Reserve | – | (21,000) | (37,000 |
| Closing Balance | 19,000 | 40,000 | 78,000 |
Income Statement for Boden for the Projected Financial Years
| Promotional Activities | First Year | Second Year | Third Year | Promotional Activities |
| Research | 25% | 20% | 10% | |
| Achievers | ATL | |||
| TV Advertisements | 28% | 30% | 20% | |
| Travel Magazines | 10% | 10% | 15% | |
| TTL | ||||
| Email Marketing | 5% | 5% | 10% | |
| BTL | ||||
| Google Ad Words Campaign | 5% | 5% | 10% | |
| Gmail Advertising Campaign | 5% | 5% | 10% | |
| GDN Campaign | 5% | 5% | 5% | |
| Face book Advertising | 7% | 5% | 10% | |
| PR Activities | 10% | 15% | 10% | |
| Research | 35% | 25% | 20% | |
| Experiences | ATL | |||
| TV Advertisements | 20% | 25% | 15% | |
| Business and Travel Magazines | 15% | 10% | 10% | |
| TTL | ||||
| Email Marketing | 5% | 10% | 10% | |
| BTL | ||||
| Google Ad Words Campaign | 10% | 10% | 20% | |
| LinkedIn Advertising | 5% | 10% | 10% | |
| Gmail Advertising Campaign | 5% | 5% | 5% | |
| Face book Advertising | 5% | 5% | 10% |
Financial Position Statements for the projected Financial Years
| For the year 31st March | Year 1 | Year 2 | Year 3 |
| Non-Current Assets | |||
| Property Plant & Equipment | 3,846,000 | 3,487,010 | 3,138, 000 |
| Current Assets | |||
| Inventory | 40, 000 | 52, 000 | 59, 000 |
| Trade Receivables | 118, 000 | 168, 000 | 198, 000 |
| Cash In Hand & Bank | 344, 000 | 431, 000 | 690, 000 |
| 503, 000 | 652, 000 | 948, 000 | |
| Total Assets | 4,349, 000 | 4,139, 000 | 4,087, 000 |
| Capital Liabilities | |||
| Owners Funds | |||
| Capital | 1,350,000 | 1,350,000 | 1,350,000 |
| Retained Earnings | (523, 000) | (229, 000) | 313, 000 |
| Reserves | 19, 000 | 40, 0004 | 78, 000 |
| 846, 000 | 1,161, 0003 | 1,741, 000 | |
| Non-Current Liabilities | |||
| Loans and Borrowings | 2,362,500 | 1,837, 000 | 1,312, 000 |
| Inter Company Loan | 500,000 | 500,000 | 375,000 |
| 2,862,500 | 2,337,500 | 1,687, 000 | |
| Current Liabilities | |||
| Loans and Borrowings | 525,000 | 525,000 | 525,000 |
| Trade Payables | 20, 000 | 27, 000 | 32, 000 |
| Accrued Expenses | 95, 000 | 88, 000 | 101, 000 |
| Tax Payables | – | – | – |
| 640, 000 | 640, 0001 | 658, 000 | |
| Total Equity & Liabilities | 4,349, 000 | 4,139, 000 | 4,087, 000 |
Controls and KPI for Achievers and Experiences
Table 8 Control and KPI for Achievers and Experiences
| Evaluator | Budgeted Achievement | ||
| 2018 | 2019 | 2020 | |
| Sales Increase | 5% | 15% | 25% |
| Customer Return Rate | 50% | 65% | 80% |
| Customer Consideration | 10% | 15% | 25% |
| Customer Loyalty | 60% | 70% | 80% |
| Customer Satisfaction | 85% | 85% | 90% |
| Increase of Customer Awareness | 60% | 60% | 75% |
| Recalling Rate | 50% | 60% | 60% |
| Growth of Page Likes | 35% | 35% | 40% |
| Growth of Page Visits | 50% | 55% | 70% |
| Growth of Traffic Reached | 30% | 35% | 40% |
| Increase of Word of Mouth Referrals | 10% | 15% | 25% |
| Increase of New Users | 20% | 20% | 20% |
Table 9 Overall Finance Forecast (2018-2020) (in £ Million)
| Revenue/Cost Item | 2018 | 2019 | 2020 | |||
| Revenue | 2.61 | 100% | 0.78 | 100% | 0.31 | 100% |
| Cost of Sales | 1.18 | 45% | 0.30 | 38% | 0.11 | 35% |
| Gross Profit | 1.44 | 55% | 0.49 | 62% | 0.20 | 65% |
| Staff Related | 0.31 | 12% | 0.11 | 14% | 0.05 | 15% |
| Fixed Assets | 0.10 | 4% | 0.04 | 5% | 0.02 | 7% |
| Communications | 0.05 | 2% | 0.01 | 1% | 0.00 | 1% |
| Other Administration | 0.18 | 7% | 0.07 | 9% | 0.03 | 9% |
| Marketing and IT | 0.52 | 20% | 0.16 | 20% | 0.06 | 20% |
| Total Cost | 1.18 | 45% | 0.38 | 49% | 0.16 | 52% |
| Net Profit – before Tax | 0.26 | 10% | 0.10 | 13% | 0.04 | 14% |
Key Financial Performance Ratio Calculation
| Ratio | Year 1 | Year 2 | Year 3 |
| GP Margin | 64% | 66% | 67% |
| NP Margin | -37% | 14% | 21% |
| ROE | -30% | 25% | 68% |
| ROCE | -11% | 9% | 17% |
| ROA | -9% | 8% | 14% |
| Current Ratio | 0.79 | 1.02 | 1.44 |
| ICR | -2 | 2.67 | |
| Gearing Ratio | 0.77 | 0.67 | 0.49 |
| Debt Equity Ratio | 2.52 | 4.00 | 2.46 |
Graphical Presentation of the Key Financial Ratios (Past Two years + Next Eight Years)
Table 10 Ratio Calculation Profitability
| Ratio | Yr-1 | Yr.- 2 | Yr.- 3 | Yr-4 | Yr.- 5 | Yr.- 6 | Yr.- 7 | Yr.- 8 | Yr.- 9 | Yr-10 |
| GP Margin | 64% | 66% | 67% | 67% | 67% | 67% | 68% | 68% | ||
| NP Margin | -37% | 14% | 21% | 20% | 29% | 29% | 34% | 35% | ||
| ROE | -30% | 25% | 68% | 50% | 46% | 34% | 31% | 27% | ||
| ROCE | -11% | 9% | 17% | 17% | 23% | 20% | 20% | 18% | ||
| ROA | -9% | 8% | 14% | 14% | 19% | 18% | 19% | 17% |
Table 11 Ratio Calculation Solvency
| Ratio | Yr-1 | Yr.- 2 | Yr.- 3 | Yr-4 | Yr.- 5 | Yr.- 6 | Yr.- 7 | Yr.- 8 | Yr.- 9 | Yr-10 |
| Gearing Ratio | 0.54 | 0.70 | 0.77 | 0.67 | 0.49 | 0.31 | 0.11 | |||
| Debt Equity Ratio | 1.18 | 2.52 | 4.00 | 2.46 | 1.27 | 0.67 | 0.29 | 0.07 |
Figure 6 Solvency Ratio Calculation
Table 12Ratio Calculation Liquidity
| Ratio | Yr-1 | Yr.- 2 | Yr.- 3 | Yr-4 | Yr.- 5 | Yr.- 6 | Yr.- 7 | Yr.- 8 | Yr.- 9 | Yr-10 |
| Current Ratio | 0.79 | 1.02 | 1.44 | 1.77 | 2.07 | 3.48 | 10.91 | 15.38 | ||
| Interest Cover ratio | -2 | 2.67 | 4.69 | 5.88 | 11.02 | 20.51 | 211.34 |
Marketing Objectives
- To upsurge the quantity of new visitant stays by 1500 by the completion of the 1st year.
- To upsurge the income margin produced from the by 20% by the completion of the 1st year.
- To upsurge the quantity of repeat clienteles by 50% by the completion of the 3 years.
- To upsurge the client faithfulness to Boden by 70% by the completion of the 3 years.
- To upsurge the top of the mind consciousness between the Achievers by 60% at the completion of 3 years.
Marketing Objectives for Experiences
- To upsurge the quantity of new clients by 2500 by the completion of the 1st year.
- To upsurge the income margin produced by 20% by the completion of the 1st year.
- To upsurge the quantity of repeat clienteles by 40% by the completion of the 3 years.
- To upsurge the client faithfulness to Boden by 60% by the completion of the 3 years.
- To upsurge the top of the mind consciousness between the Achievers by 60% at the completion of 3 years.
Conclusion
The organization was set up in 2009 as a sharing economy organization which was at the time being general thought to the market. By and by, the occasion procure business and the Clothing business support at a part on section step by step, the UK commercial center procedures of Boden exhibited a decrease in development. However, the environmental examination has underlined chances for the business to support in the UK Market. With a specific end goal to change quickly and recuperate the sanctioning of the London showcase the report benevolences an entire promoting plan.
The expected advertising design has prescribed 2 areas to accentuation with a specific end goal to recuperate the introduction of the business. The article likewise displays a total assessment of showcasing arranging, advance methodology, STP approaches, financials and limits of the task. Moreover, the report likewise contains application issues and how to overpowered same, desires made when fabricating the arrangement while stretch the significance of circulation for projections.
Bibliography
Aaker, D., 1995. Strategic Marketing Management. New York: John Wiley.
Ansoff, I., 1965,. Corporate Strategy. McGraw-Hill: New York.
Bhunia, A., Khan, I. & Mukhuti, S., 2011. strategic Marketing. Journal of Management Research, pp. 1-22.
Catheline , T., 2010. Marketing Management. New York: Prentice Hall.
Ebenezer, A. & Asiedu, M., 2013. Marketing Management. International Journal of Business and Social Research (IJBSR), pp. 25-34.
Keller, K, 2003, Strategic Brand Management, Irwin Mcgraw- Hill, New York.
Kotler P, Keller K, 2006, Marketing Management, 12th edn, Prentice Hall of India Pvt Limited, New Delhi.
Kotler, P and Keller, K, L, 2012, Marketing Management, 14thedn, Pearson, New Jersey.
Martin, 2012. Management Studies. The Ride Sharing Company in South Asia , pp. 55-69.
McCombs, B. L., 2014. Using a 360 degree assessment model to support learning to learn. Learning to learn for all: Theory, practice and international research: A multidisciplinary and lifelong perspective, pp. 241-270.
Sanders, M., Lewis , P. & Thornhill, A., 2010. Research Methods for Business Students. London : Pearson .
Wilkies, J. M. & Brayshaw, F. M., 1998. Management of Comapny Fianance. London : Thomson Learning .
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