Marketing Assignment - Pull and Bear

Pull and Bear was introduced in the UK market on May 2008 by Inditex group and it took them until 2009 to bring their urbanwear to London launching two shops in the city in the same year. (LondonTown, 2010). After Zara, it is the largest brand of Inditex. The importance of the name and the logo is to help the consumer to identify the brand. (Ryan, 2008). Its product consist of casuawear offer denim and other outfits both to teenage market up to 25 years old. Pull and Bear has affordability price. This brand wants to achieve different styles of customer interested in fashion, music and style. Pull and Bear is product driven. New product goes into stores twice a week. This is the better tattic of this brand, (Donati, 2008).

The MixMap model help to find the positive and negative action of Pull and Bear in the UK market.

The first part of this model il the product lifecycle (PLC). A PLC can be divided into several stages characterized by the revenue generated by the product. If a curve is drawn showing product revenue over time, it may take one of many different shapes. Applyed to a brand its duration may be different, depending of the product.

The PLC shows that Pull and Bear is in the grow position. The UK expansion programme of the brand came along 2009 and 2010 however with only four stores opened although the store opened on the major Oxford street flagship. The build is less rapidly then expected. (Retail week, 2010)

The expansion strategy is helping Pull and Bear to create a well established brand in the British market. The Promotion and the use of music celebrities is the principal way to attract its target of young people. Young people are influenced by celebrities so this is the best way to enter into the heart of the young customers. (Pull&Bear, 2010)

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Pull and Bear is in the growth phase on the PLC. The brand presents a wide range of quality product. It produces t-shirts with attractive stamps. The collection for summer 2010 called 'The Golden Age' presented a country chic style because of the mix of casual stile with a bit of smartness. (Naomi, 2010) Surely the promotion and the attractive campaign allow this brand to remain in the grow phase.

The PLC is related to the Boston Consulting Group Matrix (BCG). The BCG provides a useful way of searching the opportunities in the market and how best allocate the resourse to maximize profit in the future. Originated in the early 1970's it was devised as a method for helping societies decide which parts of their business should allocate the avaialable cash to. However the BCG is also a good tool for thinking where to apply other resources like people and time.

It is important to understand how the market share and market growth interrelate. (Marketingteacher , 2010) (12Manage, 2010) (Hooley et al., 2004)

Pull and Bear presents a growth rate to be not so high. As mentioned before the brand just opened two showroom in London so the company is interested in the UK market. Pull and Ber wants to attract new customers in the UK market throughout collaboration with music.(YouTube, 2009). However the financial situation of the company was not brilliant at the end of 2009.(Anon., 2010) Hovewer the total income of sales rise up of 10% in 2010.(Inditex 2010) Pull and Bear presents a growth of the general sales as a worldwide Inditex company and in the UK market. The growtn is slow and this is due to the expansion in the market but in the inditex Third Quater result is stated that 'Sore sales in local currencies have increased by 10% from 1st August to 12th December 2010'.(Inditex, 2010, p1) (Apendix)

Although the slow growth Pull and Bear is entering a Star, position with a high market share and a high growth. There should be some opportunities in the UK market and the group is working to achieve it by studing the market everyday throughout the store manager relations (Inditex, 2010)

On the BCG the brand has to continue the expansion in the UK market. It is in the growth phase and eventhough the brand is could face loss, due to the stores opened, it wont have many difficult to expand more being a part of Inditex group which had an increase of the total revenue. (Inditex 2010)

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The Ansoff Matrix also called Product/Market Expansion Grid is another marketing tool originated by Igor Ansoff and first published in the Harvard Business Review in 1957.(QuickMBA, 2010) The matrix allows to find different way to increase the business throughout the existed product or a new concept in the designed market. This tool helps companies to find the best action to obtain the result expected. It has four strategies incorporated. (MindTool, 2010) It is important to consider several factor such as the condition of the market (growth, recession, decline) the competition and the resourse of the same market. The Ansoff model approaches portfolio management from a different point of view to Product Life Cycle Analysis and the Boston Matrix. Instead of focusing on profitability and sales, the Ansoff matrix outlines the option open to brand wishing to grow. The Ansoff Matrix looks similar to the BCG but in here the case axes of the matrix relate to where the marketing strategy is targeted at existing or new customers and if the product should be used or new products should be developed.

Pull and Bear in the second stage, market penetration, maybe going toward the market development. The Uk market had a good reaction from recession in 2010 (BBC, 2010). Pull and bear adopt different strategies. Promotion is important to highlight the value of the brand and the company is active on this way. An english model was chosen for the last campaign. Also the company improves the product with new image, new items and logo. (Pull&Bear 2010).

As a new brand in the UK market Pull and Bear is trying to make customers to regular clients and then to heavy clients. This is the most important things for this brand. (Inditex, 2010) To get more customer Pull and Bear adopt strategies like volume discounts, gift voucher and discount voucher. As the brand is new into the market is alos in the product development point trying to capture clients from other