Question

Please read the below essay, and answer the following questions

Jaeger, the privately owned fashion chain, is to launch its first young fashion range, in an effort to attract more youthful shoppers.Boutique by Jaeger aims to compete with high street stores such as Whistles, Reiss and All Saints, but also with diffusion ranges from upmarket designers such as Marc by Marc Jacobs and See by Chloé.It will be aimed at shoppers aged 20-25 and will be priced 25-30 per cent lower than Jaeger's other ranges.The move underlines the appeal to retailers of younger shoppers, who have proved more willing to spend through the recession. Belinda Earl, group chief executive, said the new line may appeal to a "customer who shops with us maybe only during the sale. It's a way we can attract that customer all the year round ...it will also bring customers in who can trade up to the main line". Jaeger, which started life in 1884 when German doctor Gustav Jaeger extolled the benefits of wearing natural fibres, has been transformed under Ms Earl and Harold Tillman, the entrepreneur who acquired it six years ago. The Boutique range is based on the Young Jaeger line that Jean Muir designed in the 1950s and 1960s.

Questions:

How is the fashion market segmented?

Why and how is Jaeger trying to appeal younger shoppers?

What else can be done with limited budget?

Answer 1

1.Market segmentation is the process of dividing consumers into different categories based on distinguishing characteristics. The impetus behind market segmentation is that it helps retailers identify customers who are most likely to buy their products

In general Fashion Market is segmented in following way:

1. Haute Couture&Couture  – This consists of very expensive, luxury articles mainly for celebrities and international clients and such products are bought to be worn on special ocassions.
2. Ready-To-Wear – This again consist of high priced products. The target market is again celebrities who buy such products for daily to special ocassions.Mainly fashion designers advertise these products through fashion shows and price is high.
3. Diffusion This consist of designer and premium brands and are ready to wear.These consist of casual and sportier clothing and is mainly targeted towards younger audience and prices are higher than average market price.
4. Bridge – premium brands. These are used for daily ocassions. The target customers are usually a mix of wholesale and retail distribution,both international and local brands with local customers
5. Mass market – This consist of cost effective products and are sold through retailers and stores. The target market consist of teenagers and sophisticated women who are cost conscious and love to wear fashionable products.

2. Jagger is trying to appeal to young customers by providing them high quality products but at affordable prices. The prices are kept lower than the competitors. This will help in attracting the customers all the year round and not only at the time of sale. This will also help to bring the customers who can trade upto main line.

3. Since the budget is limited so new designers can be hired at low cost who can provide creative products. Jaeger can organize a fashion model contest among its customers as this will not only promote sales but also customer loyalty. Encourage customers  to pose pictures on social media while wearing clothes from Jaeger brand and tagging the brand.Collaborating with local business partners can also help in promoting the brand.