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This report is an in depth research into the Cotton On group. The purpose is to explore and
conduct a SWOT analysis, positioning the company in comparison to its competitors, discuss the
current and future state of the TCF industry in Australia and to finally draw conclusions and
The findings of this report discovered that Cotton On is an extremely successful company in
Major conclusions from this report is that Cotton On has needed to adapt to the changing climate
of fashion retail in Australia, introducing a strong online platform both on social media and online
stores in order to compete with increasing overseas competition. They have branched into various
As a group our major recommendations are for global expansion to allow them to explore relatively
new markets such as Asia, improving their online store to capture a larger online audience and
create a seamless online and instore retail experience and small improvements to quality to match
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Contents Page
Introduction 5
1 History and Background of the Company 6
2 Situation Analysis (SWOT) 7
2.1 Strengths 7
2.1.1 Wide market coverage
2.1.2 Locations (easily accessible)
2.1.3 Global presence
2.1.4 Quality fast fashion is reflected at a low cost
2.1.5 Cotton On foundation
2.1.6 High Stock Turnover
2.2 Weaknesses 8
2.2.1 Inability to respond to trends rapidly
2.2.2 Internal communication is slow and poor between head office and retailers
2.2.3 Low quality products
2.2.4 Poor customer service
2.2.5 Poor Store Layout
2.2.6 Unreliable Shipping from the website
2.3 Opportunity 9
2.3.1 Global expansion in growing markets such as the Middle East, China and South
America
2.3.2 Opportunity to increase customer flow by exploring innovative promotional strategies
(in Australian and overseas stores)
2.3.3 Improving the online store
2.3.4 Develop innovative product diversity
2.4 Threats 11
2.4.1. International competitors global expansion
2.4.2. Increase scarcity in retail rental space in major Australian cities.
2.4.3. Poor supplier conduct threatens marketing and brand image
2.4.4. Consumer attitudes towards buying large quantities of clothing and footwear is
declining in Australia.
2.4.5. Australias ageing population
3 Companys Positioning Strategy and Consumer Segments 12
3.1 Cotton On
3.2 Cotton On Body
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3.3 Rubi Shoes
3.4 Typo
3.5 Supre
3.6 Factorie
3.7 Cotton On Kids
3.8 Cotton On Free
3.9 Cotton On Foundation
3.10 Positioning map
4 External Environments Impact on the TCF Industry 15
4.1 Demographic 15
4.1.1 Increase in wealthy immigration levels
4.1.2 Australias ageing population
4.2. Economic Impacts 15
4.2.1 Employment levels
4.2.2 Fluctuating Exchange rate
4.3 Competition 16
4.3.1 International brands moving into Australia
4.4 Social cultural 16
4.4.1 Shopping online has become convenient for businesses and consumers
4.4.2 Impulse buying using smartphones or tablet devices
4.5 Political and Legal 17
4.5.1 FTA
4.5.2 Labelling Laws
4.6 Technology 17
4.6.1 Google unveils new Purchases on Google.
5 Conclusion 19
6 Recommendations 20
6.1 Global Expansion
6.2 Improve Online Store
6.3 Improve Quality
6.4 Increase Airfreight
6.5 Innovative Promotional Strategies
References 21
Appendix 25
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Introduction
The following is a research report on the marketing activities of Cotton On Group. The aim is to
understand the fashion brand and how to conduct a marketing business report. This is an
assignment administered by the Marketing subject within the Associate Degree of Fashion and
Information has been gathered from a variety of secondary sources, both digitally and from
The scope of this report ranges from the History of Cotton On Group, the marketing elements, and
summaries of findings.
Material included are company history, background, a situation analysis, the companys
positioning strategy, their consumer segments, external environmental factors (currently and
potentially impacting the Textile, Clothing and Footwear industry), conclusions, and
Limitations to this report consist of limited primary information from the organization itself, depth of
This report was requested by Yuping Li for the Marketing subject of the course.
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