Topshop is one of the famous British fashion retailer multinational company. The company deals in retailing of clothes, shoes, accessories and makeup. It is operating across the globe and has more than 500 shops across the world. It also provides online retailing services. Topshop attracts talented individuals and help them in styling themselves. It believes in taking the high-street fashion to different level. The company make sure to hire talented and skilled team and staff who can help customers in best possible way (Topshop, 2020).
Ansoff matrix is the marketing planning tool for growth and expansion of the businesses. It helps the company in choosing best growth strategy in combination of markets it is serving to, and products it is selling. The company make sure it adopts the right strategy by analyzing the current situation and performance. Here is the detailed Ansoff matrix analysis of Topshop.
Market Penetration
Market penetration is the strategy suggested by Ansoff matrix in the first quadrant. The strategy encourages the company to penetrate deeply in the current markets it is serving to with the current products. This strategy helps the company in increasing the market share in industry. This is the least risky strategy for the company. There are number of ways for adopting this strategy for growth in sales. Competitive pricing, promotional offers, aggressive marketing techniques and personal selling are some of the ways. Topshop has adopted this strategy successfully. It started offering different discounts and sales like Basics 3 for £12 or student discount 10%. Topshop also introduced its gift cards. The company is working hard to attract more and more consumers because of the competition from H&M, Zara, Primark, etc. Moreover, it started aggressive marketing by informing its customers about the new stocks, sales, promotions, etc. (Crouch, 2014).
Product Development
Product development is the strategy suggested by Ansoff matrix. This strategy mainly focuses on the product expansion of the company. Company adopting this strategy has to introduce a new product in the current market it is serving to. The new product can be the extended version of existing products. This is also called product expansion strategy. It involves innovation and research that what exactly consumer needs are. Topshop deals in clothing and fashion. It has adopted this strategy and focused on introducing different products. Its collection of Kate Moss is considered as product development. Moreover, it also started its designer collection, maternity clothing range, mini, and Topman for the market. Its new collections and range made its space in the industry and many consumers prefer their clothes (Moore, 2014).
Market Development
Market development is the strategy focuses on the market expansion. It motivates the company to explore new markets for the current products and target new customers. It helps the company in growing in different regions. Company explore new markets either geographically or demographically. Geographically it expands itself in different locations and demographically, it expands in targeting different consumer base like children, both male and female etc. Topshop identified the new markets and regions it should expanded to. The company made its research widely and expanded itself across the globe. It entered in African markets, in USA markets, and in Asian markets. It introduced its app and online retailing to attract new customer base. It started the service of click and collect. Moreover, it stated operating new flagship stores in different regions (Crouch, 2014).
Diversification
Diversification is the riskiest strategy among all. The strategy motivates the company to introduce new product for the new market in order to diversify the risk to greater proportion. New product can either be completely different product or the connected one. If this strategy gets successful, company will be able to gain lots of benefits from it. As this will open the new opportunity doors for the company. Topshop was dealing in clothing and shoes, but later it diversified its retailing services and started operating in accessories and makeup line. Its cosmetic line is a result of diversification strategy. It also started giving gifts and novelties as a diversification, which helps the company in gaining consumer attention (Moore, 2014).
References
Crouch, G. 2014. Management and marketing report for Topshop. [Online], Available at: https://issuu.com/gillcrouch/docs/management_and_marketting_report, [Accessed on: 20th February, 2020].
Moore, J. 2014. Complete Topshop presentation. [Online], Available at: https://www.slideshare.net/JessicaMoore10/complete-topshop-presentation, [Accessed on: 20th February, 2020].
Topshop, 2020. Who we are? [Online], Available at: http://www.careers.topshop.com/who-we-are/, [Accessed on: 20th February, 2020].