Strategic Marketing Management Case Situational Analysis – 5Cs


This specific endeavors to explore aspects of Strategic Marketing Management in order to find out the effectiveness of the business activities that different organisational management things undertake to attain a competitive advantage in the present market. The thesis statement of this Case Study Help is to investigate the strategic marketing techniques that Eileen Fisher undertakes.

Marketing Management

Situational Analysis

The Marketing Management focuses on applying 5Cs evaluation in order to do a full situational analysis, thereby understanding the current state of affairs in regards to Eileen Fisher and the problems and opportunities that it may face. As Proctor (2000) opines, the first ‘C’ stresses on the company and the product line and the services of a company needs to be attractive enough, thereby creating a distinctive brand image in the market. Thus, it is to be noted that Fisher offers a wide range of a distinctive looking clothing collection, which are simple yet comfortable. Moreover, collaborators form another important part of the situational analysis, thereby comprising the suppliers, alliances distributors

Spradlin (2012) reveals in his article that, since customers form a significant part of the situational analysis, therefore it is obvious that Fisher concentrates on segmenting its market suitably, evaluating the market size and growth, the ways by which it can influence the customers, frequency rate of their purchase and many more. Competitors do form another important aspect of the 5C’s situational analysis, thereby finding that Ann Inc., The Talbots Inc., and Donna Karan International Inc. are its primary rivals. Ultimately, it is noted that the climate, rather the macro-environmental factors form another part, thereby understanding the factors that influence not only influence Fisher in particular but the entire clothing industry of Australia as a whole (Mooradian, Matzler & Ring, 2012).

Identification of the Problem/opportunity

Based on the 5C’s situational analysis, the Marketing Management comes up with certain opportunities as well as problems that Fisher faces in terms of urgency and significance. Thus, appropriate matrices are used in order to understand the importance and the urgent situations to classify the opportunities and threats.

Fisher faces stiff competition from its rival companies like The Talbots Inc, Ann Inc and Donna Karan International Inc., which acts as a serious threat to its prosperity (Kaplan & Mikes, A. 2012). In fact, this comes under the quadrant referring to high impact and high urgency. Moreover, Fisher also faces problems in relation to its collaborators, especially the suppliers at times, with the supply of the raw materials. This particular problem, however, falls under the category that manifests not important but urgent. It is also to be noted that Fisher does not do adequate social media promotions in order to reach out to different customers (ShopStyle, 2014). On the other hand, the problems Eileen Fisher faces in getting new customers as well as retaining the old and the new ones are important but not urgent.

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In Marketing Management Apart from the threats, there are also certain opportunities that Fisher can take advantage. For instance, the foremost strategic element that Fisher possess is manufacturing simple yet sober clothes for middle age and/or old women, especially for the office-goers (ShopStyle, 2014). It manufactures clothes mainly for this particular segment because of which the approach may be a strategic fit to the bag in all the middle-aged women office goers, but it is definitely not attractive enough. Unfortunately, there are no other attractive or strategic fit aspects in case of Fisher.

Problem/Opportunity Statement

It is found that Fisher manufactures clothes only for older women. One of the possible reasons behind such an aspect is the limited amounts of talents that the workforce of Fisher possesses. The employees are not efficient enough to try out innovation and unique design and style based clothing. In fact in accordance to the researches done by Collis & Rukstad,  (2008) indicate that the employees of Fisher do not have much confidence over producing clothes for young customers because as they conceptualize, young people tend to have mood swings and loyalty switch due to which they cannot be considered reliable enough.

As McLaughlin (2009) identifies in their article, in this era of globalization people tend to have to change demands and preferences in context to their clothing styles. Thus, they tend to switch over companies, which offer a wide range of collection as well as fresh collections of garments at regular intervals. In this present scenario, the women, especially the working people usually demand clothes, which are trendy as well as sober and professional enough. Thus, the already existing competitors in the market, such as Donna Karan International Inc, Ann Inc and The Talbots Inc pose a stiff competition to Fisher.  In fact, they too are the famous brands of Australia (Rubin, 2010). Moreover, they manufacture clothes not only for old women but also for emerging and nascent women. It is also to be noted that apart from Australian brands, there are also international clothing brands, which tend to threaten the position of Fisher. For instance, international brands like Laura Ashley, Ethical Threads, and Beulah London are some of the famous UK clothing brands, which have already received a good position in the market. In addition to it, there are also certain local emerging competitors in the market, which create risks for Fisher for attaining a competitive advantage (Cooper, 2000).

It is also found that Fisher faces a problem in relation to the supply of the raw materials from its suppliers. Since there are a number of clothing manufacturing companies in the market, therefore the suppliers tend to raise the value of the raw products at times, thereby forming alliances to the particular company, which offers the highest value. As already mentioned above, since there are a number of competitors in the marketing management, therefore Fisher does face a problem in retaining its customers as well as bagging in new customers. In accordance with Wilson & Gilligan (2005) customers mainly has an inclination towards those fashion houses, which offer fresh collection on a regular basis. Thus, in this competitive market, when other clothing organisational behavior offers clothes a variety of clothes for different sections of women in the society, then there is every possibility of switching over of customer loyalty. Moreover, Fisher’s non-involvement in the social media marketing does not open many opportunities to market its products. Its non-engagement in the social networking sites, such as Twitter, LinkedIn and Facebook help it to lag behind in reaching out to a wide range of customers across the globe.

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In accordance to McLaughlin (2009) attractiveness of a company tends to be identified based on the criterions such as high growth, large market size, and favorable industry. On the contrary, Strategic fit refers to the demand in regards to the targeted customers, resources. As found out earlier, Fisher successfully bags most of those women customers who are office-goers with the wide range of simple yet classy clothes that it manufactures. This, in turn, helps to collect revenue only from a restricted part of the population. Researchers like Wilson & Gilligan (2005), opine that producing concentrated types of items help in maintaining good quality work products. However, in accordance with Cooper (2000)’s explanations, non-diversification of products leads to restricting the customer target, thereby weakening the position of the company in the market. It is evident enough that such is the case of Fisher because targeting older women only leads to such situations when it misses the vibrant niche population. Thus, this Marketing Management indirectly hampers the performance outcomes.

SMART Objectives

Having detected the problems and opportunities it is realized that Fisher requires modifying its objectives in order to obtain a competitive position in the market. Thus, in this particular assignment, a set of SMART objectives is formulated which can help Fisher to attain a prospective position. It is noted throughout that each of the objectives is specific, measurable, achievable, reliable and time-bound so that it helps in attaining a competitive advantage in the market.

  • To diversify the product range in order to appeal to the customers of diverse demographic segments in the next 1 year
  • To make innovations regarding new designs that appeal to the niche customers in the different fashion markets across Australia and abroad
  • To expand in newer markets and target audiences by aggressive marketing promotion through digital media
  • To enhance the sales by 10-17% in the next 2-3 years through promotional campaigns that appeal to potential customers

Strategy Marketing Management statement:

The organization Fisher has formulated Differentiation strategy under Porter Generic strategy for repositioning the brand and eradicate all above mention issues.

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With help of differentiation strategy, an organization trying to represent the organisational image in a different way in front of potential customers. This strategy is more focused about to establishing loyal customers rather than increasing its market share. Thus, according to Sorescu et al. (2011), in order to represent the organizational image in the different way the organisational management of Fisher has included few factors involves an advertisement for branding, products, services, quality, design and new product development. Moreover, it is clothing manufacturing organisation so the organisational management has implemented differentiation strategy in the organisation with product development and enhancing the product quality. The research referred by Shankar et al. (2011) stated that providing superior product and value towards the customers the organisational management can get success in this area.

Collis et al. (2008) stated that following the differentiation strategy the organisational management provides unique products and that help the organisation to build different comparing to its competitive organisations. This uniqueness will help the organisation for establishing the loyal customers. Sorescu et al. (2011) suggested that in order to implement the differentiation strategy in the organisation for branding reposition the organisational management should possess effective and efficient research and development department. This can help the organisation to make different through designing new and unique dress for the customers. Apart from that, other important skills are innovative features among employees, good relation with entire stakeholders, effective marketing skills, those also needed for differentiation strategy.  As viewpoint of McColl (2011), this strategy stated that in order to make differentiation from the competitive organisation, the organisation should make the products that are either very difficult to production or very expensive. Following these two features when the organisational management produces the products then it will be tougher to switching top competitor organisation.

The organisational management of Fisher has adopted this differentiation strategy as it has analysed that the organisation actually used to designs traditional cloth. Although the old age people like that types of products but the younger people do not like that types of cloth. Moreover, EILEEN FISHER, founder of Fisher has stated that he had realized this mess-up when his own teenage daughter refused to wear the cloth from Fisher brand. This is the reason implementing the differentiation strategy in the organisation the organisational management wants to reposition the brand. An organisation always targets all types of customers. Targeting one type of customers, the organisation cannot reach in good position. According to Shankar et al. (2011), the organisational management of Fisher has implemented focus strategy in the organisation for brand repositioning and wanted to provide the products for all customers.

Strategy justification:

The organisational management of Fisher has implemented differentiation strategy in the organisation and focus to manufacturing the new product with creative features for all age group customers.  Differentiation strategy is justified because it will help to redesign innovative apparels and accessories redefines the brand image and appeals to the younger masses. The fashion lovers belonging to nonchalant categories are important to be attracted as they have a strong inclination towards contemporary fashion with a good spending power (Kaplan & Mikes, 2012).

With implementing differentiation strategy, it is possible to manufacture different types of products and for all age group customers. As per the given case study, the organisation is facing external issue such as decreasing market share compare to competitors in the country. apart from that, although the organisation designs the cloth for all generation of people but more maximum customers of Fisher belong from old age women. In this situation, implementing differentiation strategy is partially favourable for the organisation (Kaplan & Mikes, 2012). Although the organisational management implemented differentiation, strategy for the above mention problem but the organisation possesses many other problems regarding lack of using strong promotion strategy, poor relationship with the entire stakeholders, competitor analysis, achieving new customer etc. With the help of differentiation strategy, the organisation cannot eradicate those problems. Thus, the organisational management should focus on these factors for future growth. As the organisation has made their SMART objectives to product differentiation with one year, so the organisation has appropriately implemented differentiation strategy. However for making strong relationship with stakeholders and compete with competitor differentiation strategy provides benefit partially.

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The organisation Fisher is trying to reposition the brand because it is facing several issues in the context of creating an appeal that attracts the younger masses in the fashion world. The implementation of differentiation strategy will not only allow redesigning innovative garments and apparels that appeal to all sections of the customers and create a niche for the brand. This strategy of Marketing Management will also help the brand to meet the SMART objectives designed in order to gain a larger market share, achieve sustainable sales and revenue while repositioning its brand in a manner that cuts down the existing competition. However, it is recommended that the Fisher brand must implement a hybrid strategy that is described in the section below.