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Some aspect of strategy of marketing of Topshop

Categories Marketing

Essay, Pages 12 (2948 words)



Essay, Pages 12 (2948 words)

Marketing is an important part of success in business. To achieve the target, the company should have particularly marketing plan. Micro and macro environment, product, price, promotion and place strategy as well as determine target market.


Fashion is a part of life and TOPSHOP is one of the famous brand names of fashion in many countries. Establishing in the 1960s at London which become a multinational company in the world with 620 stores and franchises in around 50 countries in which have over 300 stores in UK.

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With over 10,000 employees, profit of TOPSHOP was £221 million (2016) although it is fell 16% according to businessinsider.com.au https://www.businessinsider.com.au/arcadia-accounts-sir-philip-green-investing-100-million-in-digital-profit-falls-16-2017-6?r=UK&IR=T) .

Moreover, according to statistics in a week, TOPSHOP attract over 4.5 million online customers that brings more benefit for this company. To get the success, TPSHOP not only has good management but also apply effectively marketing plan. This report will represent an analysis micro and macro environment.

It also provides, SWOT analysis and some aspect of strategy of marketing of TOPSHOP.

2. Situation analysis

2.1. Company background

Launching in London from 1964 to until now, TOPSHOP is a part of Arcadia Group Ltd has over 600 stores in more than 40 countries. They own two ranges, the luxurious collection is TOPSHOP Unique and the premium collection is TOPSHOP Boutique. In 2012 the main sponsor of London Fashion week belong to TOPSHOP.

They have over 400 stylists to ensure that clothes and accessories will be launched weekly and they also provide delivery service for 110 countries in the world.

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With over 10.000 staff from head office to stores, they have been contributing for the aim of the company. In 2011, the first store of TOPSHOP was opened in Australia.

Moreover, online market also bring more benefit for TOPSHOP. The website topshop.com has been attracting over 4.5 million visitor through mobile, tablet, laptop, desktop in a week. This is an impressed number to help TOPSHOP increase sales. In 2016, the total sales of TOPSHOP was £2.02 billion although it is fell 2.5% compare with last year (bbc.com) (http://www.bbc.com/news/business-40194955). According to Arcadia 2017, over 300 stores of TOPSHOP is opened in UK with the most potential store in Oxford St, London which attract more than 250000 visitor per week.

2.2. Macro environment factors

There are 6 factors of macro-environment that affect to marketing environment of TOPSHOP including Political, Economic, Social, Technology, Legal and Environment.

Political factor

Political factor is an important role to maintain government and business activities that include law, tax and regulatory policy (Fosner 2011). According to Grifn 2010(topshop.pdf), the UK is the lowest risk in the world. Most of employees of TOPSHOP with +25 year old, they will be paid at least £7.20 per hour. Moreover, the decrease of Brexit – Uk as well as employee requires high salary to £8.45 follow the calculation of UK’s Living Wage Foudation (2016). TOPSHOP also allow oversea tax and law issues from purchasing.

Economical factor

London is one of the most fashion market in the world. The price of products in retail increased because the Consumer Price Index in 2016 increased from 0.6% to 1%. Moreover, in 2016 Britain’s decision to exit the EU so the currency of Britain is dramatically fell down that is the lowest level in the past 31 years (Treanor, Goodley, and Allen, 2016). Therefore, almost £365 million of the Arcadia Group’s owner was lost (Dean, 2016).

Social factor

According to Worldomater.info (2018) (http://www.worldometers.info/world-population/uk-population/), the UK Population was 66.53 million that is approximate 0.87% total population in the world. Mintel (2010) said that increasing the female population in the future that will affect directly to women fashion because women tend to spend more money to buy clothes. Therefore, the demand of clothing can increase so TOPSHOP is expected to improve sales because the target market of TOPSHOP is women.

Technological Environment

E-commerce is a new channel that bring more profit for retailer because it helps customer easier connect with company in real time. Through online shopping, company can know customer experience, what customer want thus, targeting the right audience. Mintel (2010) said that almost women customer are prefer using activities online.

Moreover, social network like Facebook, Twitter will make customer easier update information from retailer. Currently, the fanpage of TOPSHOP has over 4 million followers. TOPSHOP Unique have free application to provide for customer therefore, customer can access through mobile, tablet, and laptop.

Legal Environment

In 2011, the financial crisis was happened so UK had to increase tax by 2.5%. It affected to the price of products or services to consumers (Key Note, 2011).
“Green initiative” is a campaign of government in 2008 to improve awareness of environment in whole country (Arcadia group report 2013). Therefore, customer tend to buy products from sustainable brands like TOPSHOP. On the other hand, global warming also affect to the clothing retailer to make a plan for two season collection (Mintel, 2008).

2.3. Micro-environment factors

2.3.1. Competitors analysis

TOPSHOP has been comparing with some competitors in fashion market such as H&M and Zara to increase their market value.
H&M is big retail clothing company from Swedish sell the product of family, footwear, cosmetics and accessories in over 4500 stores in the world in more than 60 countries (hm.com). Revenue 2016 reached over $22 billion with some brand such as COS, Weekday, Cheap Monday, H&M Home and Monki.

Zara is a Spanish company which sell clothing and accessories with brands like Zara Home, Oysho, Pull&Bear. According to zara.com, the product of Zara is including home, shoes and accessories for men, women and children. 450 million items are produced by Zara in a year. The revenue in 2017 was $ 9 billion with 2200 store in the global.

2.3.2. Suppliers

The strategy of Arcadia is how to run products quickly, therefore, Arcadia just uses factories which are operating freedom in 46 countries in the world. Currently, products of Arcadia are produced by 679 suppliers in 1034 factories. With 45% their product is provided by regular suppliers.

Almost products of TOPSHOP is made in Vietnam, China, Turkey, India, and Romania, however, some products also made in others countries if these countries provide suitable materials for products. To choose the supplier, Arcadia often focuses on prestige trading, conduct audit follow the system with 3 types are green, orange and red. Green is highest level that show the factory is run so good and high standard.

The second is orange that means the factory have to improve the conditions in 6 months. The last type is red that Arcadia does not use the factory to produce any their product until audit again and upgrade trading standard.

2.3.3. Customer analysis

According to Primary Research in November 2013 of TOPSHOP, the key customers from 16 to 30 years old women who catch the trend of fashion and sensitive about brand in the industry.

There are 2 groups of TOPSHOP’s customer which is primary customer and secondary customer. With primary customer who tend to buy creative product and innovative design. They have high wants and needs therefore, image of brand and quality of product affect directly to their buying decision.

This group is suitable for the TOPSHOP Boutique and TOPSHOP Unique collections. The secondary customer is attracted by fashion and good looking of product. They are enthusiastic people and they like social activities, social network and spend more money on fashion and entertainment. Thus, they also are potential customers in mainline product of TOPSHOP because TOPSHOP provides 400 new product on website per week in mainline product.

3. SWOT analysis

3.1. SWOT matrix


In UK market, TOPSHOP is a part of Arcadia Group which is a big brand with £279.6 million profit in 2010 (Mintel, 2010) and owned over 300 stores. With over 100 stores oversea which can improve competiveness with other competitors and it also enhance their brand and image in the fashion market not only in UK but also in the world. Moreover, e-commerce is a potential market to attract more customers everywhere know and shopping easier.


According to Irina & Klebelsberg, 2008 TOPSHOP have a lot of employee so it can make difficulty in management and increase the cost for management employee. Although TOPSHOP have a large store, it can lead to weak customer service if they are not good at management. Additionally, the website online is also weak because it lacks more information like detail and size of accessories so decision to buy product will become harder for customer.


TOPSHOP has a large foreign market especially the China market. TOPSHOP has 400 designer to make sure new collection is launched weekly.

Opportunities for Topshop are about a large number of people in China which means it can get many potential consumers. Compared with other fashion retailers, it is not just target young Chinese, but also white-collared workers and a part of middle aged persons who follow the latest fashion in China, as this kind of fashion group can afford it and willing to spend on fashion (Reuters, 2007). It is easier for attracting Chinese customers and makes them know about this brand by online shopping to increase revenue and profits


Competitors such as Zara and H&M will affect directly to market share of TOPSHOP. Moreover, TOPSHOP entry into China so they also compete with competitors in China therefore, TOPSHOP have to make a difference, enhance quality and also keep low price to get successful in this market. Moreover, to success in international market, TOPSHOP have to face some problem about policy of government, culture and customer’s behaviour.

Marketing objectives

According to mission of TOPSHOP, the objective of marketing plan is attracting more online customers and traditional customers. Increasing followers by 3% on social network like Facebook, Twitter and Instagram.

 Target Market

Target market of TOPSHOP focus on young women from 16 to 30 years old who is student, graduates or part time worker and working class. TOPSHOP has 3 main lines of collection mainline, boutique and unique. Customer tend to buy product which belong to middle level price which is mainline collection because they can afford. Currently, the target customer of TOPSHOP is student of working who comes from middle of upper class.

They enjoy doing activities in free time like going to movies, bars, pubs, travelling and hanging out with their friend. Moreover, they also like social network like Facebook, Twitter, Instagram, Blogger and Pinterest as well as like shopping online. Especially, they also have sensitive with trend of fashion and also want to show their style with others. They regularly keep up with information about latest trend. With TOPSHOP customers can create products by themselves.

Additionally, target market of TOPSHOP also focus on people who likes good quality products and care about the brand of products. They are also willing to buy more if the quality of product is higher. Customers of TOPSHOP have average income from £12000 per year and up (TOPSHOP analysis 2013).


The diagram above shows TOPSHOP is evaluated with high quality and the price of TOPSHOP’s product is high price group but it is not too high. TOPSHOP has 3 lines of product with high quality. Especially, TOPSHOP Boutique and TOPSHOP Unique are higher price than mainline product of the company because it is precious products, unique and limited edition. Target market is women from 16 to 30 years old and they has good income or high income.

Therefore, the level price in market of TOPSHOP is not too high to provide a wide of range customers. While, Primark focus on cheaper price to attract customer. They do not too care about the quality of product.

In comparison, ASOS is only brand without store, they just focus on online retailing. However, it is a huge competitiveness in fashion market with good quality of product higher than TOPSHOP higher quality than TOPSHOP and it also is positioned too high price. On the other hand, Zara is so good with high quality while the price is cheaper than TOPSHOP. H&M also a main competitor of TOPSHOP, they set price and quality is the lowest in 3 company TOPSHOP and Zara.

Marketing Mix strategy


There are 3 lines collection for customer: regular collection for women (mainline), Boutique collection and Unique collection. Each of product collection will reach the different market. Both design collection are more expensive than others collections because it is better quality and unique.

TOPSHOP is variety of product like clothing, jeans, shoses, glasses, bags and accessories, beauty and various brand carried by TOPSHOP. Generally, TOPSHOP has 3 line of product that is mainline, boutique and unique. Their products provide to women of different sizes, shapes from small to large range.

The size 4 to 6 for clothing and 2 to 8 for shoes (UK size). With products in TOPSHOP Unique and TOPSHOP Boutique are limited edition and higher quality. TOPSHOP also offer some of brands which are celebrity endorsement such as collection of Ivy Park sportswear by Beyonce’ and other collection is Kendall and Kylie. In 2010, launching of beauty makeup products such as lipstick, eyeshadow, mascara.
(So sanh vs zara and hm)


TOPSHOP used 3 types of pricing strategy including price skimming, penetration and premium. Both TOPSHOP Unique and TOPSHOP Boutique are expensive because the products has been presented on catwalk that is the most fashionable collection. Therefore, they used premium pricing strategy for the collection with the price begin from £170 and up.

Additionally, the company has a wide number of loyal customer then they can increase price of products to make profit however competitors such as Zara and River island will soon catch up and make a similar product with lower price so this lead to decrease prices of TOPSHOP’s product. The company also use penetration pricing for basic products with lower price to make more market value.

The price of TOPSHOP is set at higher price compare with others competitor like H&M. The clothing price range of TOPSHOP from £3.50 for a pair of socks to £695 for the shearling coat. As for makeup product, the beauty products have price between £1 and £35. However, the company focuses on the price level from £20 to £60 of main items like jeans, tops and dresses.

For example, total sales of TOPSHOP is 2.8 billion according to arcadiagroup.co.uk. TOPSHOP has been focused on economy jeans in which the most popular style is Jamie skinny jeans. In US retail market, they have 10 stores while H&M has 511 stores and 70 stores of Zara. According to Topshop report in 10 seconds, the company sells a pair of jeans in the global with the price from $39 to $95. Compare with H&M is a clothing and retail company from Swedish with over 4500 store in the world.

H&M set the price of jeans was $9.99-$69.99. Moreover, Zara is also a competitor come from Spanish with over 2200 store in the global. The price of jeans of Zara between $29.9 and $69.9. While Asos is a British online shop, they set price for jeans from $22 to $356 because they offer custom line so the design of jeans can fit perfectly for customer.

Obviously, the price of TOPSHOP is higher than H&M and Zara because they make a difference in design and corporate with celebrity endorsement like IVY PARK, Kendall and Kylie. However, the price of TOPSHOP’s jeans is lower than Asos because Asos provides all types of lengths for customers and Asos’s customer service also is better than TOPSHOP with delivery in same day.

Distribution (place)

Almost TOPSHOP store located on the high street in central. Currently, TOPSHOP has over 300 stores in UK and 140 stores in international countries like Australia, United State and Mexico (businessoffashion.com, 2017). The store on the Oxford Street in London is a flagship store with average 250000 visitors weekly. TOPSHOP also has potential stores on 5th Avenue in United State and the first retail store in China at Galeries Lafayette.

TOPSHOP also has effective online channel which helps the customer can easier to order products from every countries in the world through website (topshop.com). Moreover, the company have an application for mobile, tablet device. TOPSHOP got more benefit from social network especially Facebook page with high number of followers
TOPSHOP delivery over 100 countries in the world


TOPSHOP has been using effectively of digital channel like Facebook, Twitter, Instagram and Snapchat. With Instagram page, they have over 8.1 million followers which they often provide information, image of collection fashion and fashion bloggers. Additionally, TOPSHOP announced a hashtag #topshopstyle which attracted more customer share their images on Instagram.

No doubt that website is bringing more opportunities to determine target customer as well as update more information and image related to product of TOPSHOP. Using coupon codes and discount offer in promotion strategy of TOPSHOP to attract more customer because people tend to spend more money when the product is decreased.

Moreover, to improve TOPSHOP brand name, they worked with celebrity endorsement. There are some famous celebrities used to corporate with TOPSHOP like Christopher Kane, Kate Moss, Beyonce’ and Kylie Jenner to promote their brand. In 2016, Beyonce is recognized in the TOPSHOP

As for student, TOPSHOP always discount 10% in the whole year that will make increase sales of target customer is student. Especially, TOPSHOP also has magazine and launched new collection through catwalk for TOPSHOP Unique in London Fashion Week. For example, TOPSHOP Unique was shown in the London Fashion Week and everyone can watch the show online. Therefore, over 2 million people watched it and they can order product in advance and after that from six to eight week customers can get their product.

Cite this essay

Some aspect of strategy of marketing of Topshop. (2020, Jun 02). Retrieved from https://studymoose.com/executive-summary-21382-new-essay

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