BIRMINGHAM CITY BUSINESS SCHOOL POSTGRADUATE DEGREES COURSEWORK FRONT SHEET

MODULE TITLE: MODULE CODE: LECTURER: ISSUE DATE: HAND IN DATE: Managing Marketing (RESIT) CLC7014 Maureen Curtin November 2013 December

HAND BACK DATE: TBC

Learning outcomes and pass attainment level: Analyse and evaluate a specific marketing scenario. Propose a solution to marketing problems.

In order to gain a good pass for this assignment at this level students are expected to pay attention to the following: Structure and clarity of expression The fundamental features of well-structured work are expected as the norm at this level. There will be proper attention to the type and style of the assignment a case study report - and the work should remain clearly focused, follow a logical sequence and clear sense of direction even though multiple complex issues are addressed and be produced to a high professional standard. Content and understanding Extensive knowledge and detailed understanding is expected, but it is how this knowledge is used in analysis which is equally, if not more important. Capable students will demonstrate an authoritative, comprehensive awareness of the current level of performance of their chosen organisation and an equal appreciation of the relevant contemporary marketing issues they face. It is expected that students will demonstrate the significance of their chosen issues and how they contribute to an informed, critical review of the present situation of the case. Analysis/Evaluation Students should demonstrate an ability to identify and critically evaluate the key issues which are most relevant to the successful development of a future marketing strategy for the organisation. It is expected that students will show their ability to appraise and evaluate the current market situation for their chosen organisation including, the challenges it faces and the suitability of prospective strategies to fit those conditioning factors and be inclusive of the needs of the range of stakeholders involved using appropriate concepts, theories or frameworks. Reading/Research and Referencing Reading should extend beyond essential texts and / or general texts and encompass specialist texts as well as the extensive use of journal articles, periodicals including professional/industry publications in order to demonstrate a detailed and systematic knowledge base, depth of understanding and practical professional insights. It is expected that reading and research will reflect the contemporary nature of the module and the case context. The proper, accurate presentation of quotations and references and research data is expected and inaccuracies will be penalised, as will the over-reliance on a single source, poor quality and unreliable sources or limited sources of information. Application to industry Students should demonstrate the ability to integrate theory into practice and increasing abilities to suggest viable solutions to the challenges of the case organisation within the reality of the sector and environment in which it operates also demonstrating the ability to develop a realistic and viable strategic vision in the industry context. Synthesis and Originality Students should be developing the ability to demonstrate the advanced skills of synthesis, providing solutions to unpredictable professional situations when necessary and offering both creativity and originality whenever possible to meet that challenges presented by the case study.

BIRMINGHAM CITY UNIVERSITY BIRMINGHAM CITY BUSINESS SCHOOL BUSINESS & MARKETING
MODULE: CLC7014 Managing Marketing 2012-2013

Module
Managing Marketing

Level 7

Credit Rating 15

Module Leader Maureen Curitn

Assignment Brief RESIT

Date set Support / feedforward session Hand-in date as module guide

December 2013

Title Case study: The slow rise of ethical fashion

Objective This assignment has been designed to allow students the opportunity to explore the numerous marketing management issues of the contemporary business environment by applying their knowledge gained on this module over the term to a specific case. Learning outcomes On completion of the assignment students should be able to demonstrate their ability to: Analyse and evaluate a specific marketing scenario. Propose a solution to marketing problems.

Hand-in procedure Please follow University policy regarding the handing in of assignments and ensure that your assignment is handed in on time and that you retain a copy of the assignment for yourself together with the receipt.

Mode of working This is an individual assignment and University policy will apply in all cases of copying, plagiarism or any other methods by which students have obtained an unfair advantage. Task Read the case The slow rise of ethical fashion included with this assignment brief. As can be seen from case information provided, the case provides a snapshot of certain aspects of the fast fashion sector and market conditions in 2009-10. You have been asked by your marketing manager to produce a report that reflects the current situation of the fast fashion sector and the specific market of the brand you work for. In addition, your manager requires insights into how the market for your brand is likely to develop in the future and the challenges and opportunities it may face, (including a critical review of how well your brand is equipped to deal with them) and three key recommendations for how to move forward based on the evidence you have found. You may choose to work for one of the following brands for your report: o o Primark People Tree

In order to complete this task students are expected to demonstrate their depth of knowledge and understanding via: their ability to evaluate relevant marketing management issues their ability to critically apply their understanding of marketing management to their case context their ability to concisely convey relevant information within the required format the quality and variety of their reading and research to support their case analysis their ability to propose credible and viable recommendations

Format for the submitted work The case study will be submitted as a report and be presented in polished manner complete with a contents page, and with each section clearly identified and a final references section. The standard conventions of report writing will be followed, including the overall presentation of the work and the use and inclusion of supporting references and quotations within the text when appropriate. University policy regarding the presentation of the final references section must be followed. The maximum word count will be 3000 words +/- 10%. No appendices should be included. Weighting This assignment carries a weighting of 100% for the Managing Marketing module.

Assessment criteria In order to gain a good pass for this assignment at this level students are expected to pay attention to the following: Structure and clarity of expression The fundamental features of well-structured work are expected as the norm at this level. There will be proper attention to the type and style of the assignment a case study report - and the work should remain clearly focused, follow a logical sequence and clear sense of direction even though multiple complex issues are addressed and be produced to a high professional standard. Content and understanding Extensive knowledge and detailed understanding is expected, but it is how this knowledge is used in analysis which is equally, if not more important. Capable students will demonstrate an authoritative, comprehensive awareness of the current level of performance of their chosen organisation and an equal appreciation of the relevant contemporary marketing issues they face. It is expected that students will demonstrate the significance of their chosen issues and how they contribute to an informed, critical review of the present situation of the case. Analysis/Evaluation Students should demonstrate an ability to identify and critically evaluate the key issues which are most relevant to the successful development of a future marketing strategy for the organisation. It is expected that students will show their ability to appraise and evaluate the current market situation for their chosen organisation including, the challenges it faces and the suitability of prospective strategies to fit those conditioning factors and be inclusive of the needs of the range of stakeholders involved using appropriate concepts, theories or frameworks. Reading/Research and Referencing Reading should extend beyond essential texts and / or general texts and encompass specialist texts as well as the extensive use of journal articles, periodicals including professional/industry publications in order to demonstrate a detailed and systematic knowledge base, depth of understanding and practical professional insights. It is expected that reading and research will reflect the contemporary nature of the module and the case context. The proper, accurate presentation of quotations and references and research data is expected and inaccuracies will be penalised, as will the over-reliance on a single source, poor quality and unreliable sources or limited sources of information. Application to industry Students should demonstrate the ability to integrate theory into practice and increasing abilities to suggest viable solutions to the challenges of the case organisation within the reality of the sector and environment in which it operates also demonstrating the ability to develop a realistic and viable strategic vision in the industry context. Synthesis and Originality Students should be developing the ability to demonstrate the advanced skills of synthesis, providing solutions to unpredictable professional situations when necessary and offering both creativity and originality whenever possible to meet that challenges presented by the case study. In order to obtain higher grades students should consider the following: the ability to demonstrate creativity and critical analysis in the provision of original solutions the ability to demonstrate greater depth of knowledge and understanding through wide reading and varied research activities and the appropriateness of theory for understanding and developing feasible responses to real sector-based scenarios and problems
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Case: The slow rise of ethical fashion Primark, which is owned by Associated British Foods, began trading in 1969 in Dublin under the name Penneys basing its business on low costs and fast turnover of goods and entered the UK market in 1973 as Primark adding 18 stores over the next ten years. Primark followed a strategy of acquisition to continue with its expansion. In 1995 there was significant development of the UK business following the acquisition of the BHS One-Up discount chain, mostly in the Greater London area, and all of a significant size. The next major acquisitions were 11 stores from the Co-Op and 11 from C & A when they left the UK market. Originally, Primark tended to locate its stores in cheaper, out-of-town sites in areas of low income in order to reduce costs and gain proximity to its principle low income markets. However, consumer attitudes towards cheap clothing have changed over time and what drives a large section of the market is the desire to consume fashionable garments more frequently at a lower price rather than consider buying more expensive clothes for their quality and durability. This change has also been fuelled in part by the increase in media coverage of the world of fashion and the rise of celebrity culture. The fashion industry has also seized the opportunity by the shortening of the lead times between appearance of a fashion garment on the catwalk and its availability in the high street store combined with reducing costs particularly in supply chain, resulting in a more intense consumption of fashion known as fast fashion. Primark has experienced rapid growth and has seen a major strategic change transforming itself from a pile it high and sell it cheap discount retailer to a mid-market brand of increasing status among a broader target market as fast fashion has become a mainstream movement. Primarks pursuit of growth appears to be relentless. In 2006, it increased its number of outlets by 22%, and its total selling space by 40%. By June 2009, the retailer traded from 190 stores, across more than half a million square metres of trading space and continued to search for prime site locations in town centres, retail parks and shopping centres. Expansion has also occurred outside Ireland and the UK. Number of Stores Trading at 3rd December 2009 Ireland - 38 UK 138 Portugal 2 Belgium - 1 Spain - 14 The Netherlands - 1 Germany - 2

To support its expansion and shift in target market Primark has carried out a number of actions to take its discounted clothes to a broader audience including: o o o o o o o improved store layouts that are more attractive and shopper friendly fast product design, (a copy of the 3000 Gucci bomber jacket selling for just 12 sold out in all 160 stores in 2007, the Primark jacket was made of faux leather in contrast to the Gucci version) purchase of the latest fashion goods at competitive prices from suppliers all over the world economies of scale as volumes and frequency of supplies increase an organisational culture that places a much greater emphasis on good customer service employment of high quality staff with a range of retailing skills and experience publicity featuring celebrities wearing Primark clothing. Primark has even been featured in fashion magazine Vogue.

With its transformation nearing completion Primark no longer targets exclusively the low income customer, and Primark indicates that its primary target market is young, fashion conscious under 35s who want fashionable clothing at competitive prices. Obtaining and staffing prime location sites has become crucial for Primark as it continues to seek growth in sales and increased market share. Primark builds links with local colleges, Job Centres
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and community groups to aid recruitment, gives new employees a three-week induction and training programme designed to communicate its organisational culture and to build team spirit. The organisational culture attempts to maximise sales per employee by creating dynamic employees who can thrive in a fast moving fashion industry and who enjoy putting the customer first. Despite the recession Primark has continued to defy the retail gloom with 18% growth recorded in the first half of 2009. Primark stated the figures reflected an increase in selling space and excellent like-for-like sales growth which rose by 5%. Its performance has had an effect on other players in the clothing retail market who now find themselves as direct competitors for customers after Primarks shift in focus. Clothing sales at supermarkets Asda and Tesco have found themselves under pressure by the rise of Primark and other specialist value chains such as TK Maxx and Peacocks have also done well. Meanwhile Marks and Spencers has lost market share to the value chains and the supermarkets. Allegations of abusive work practices have frequently hit the fast fashion sector. Primark was accused of using factories in India where children worked long hours in poor conditions by the BBC documentary programme Panorama in mid 2008 while Tesco was accused by the lobby group War on Want for using a factory in Bangalore where workers were paid half the minimum wage and forced to work overtime. Primarks reaction to allegations at that time also came in for criticism. Rather than send a spokesperson to the BBC programme to defend the brand, Primark opted to launch a website www.ethicalprimark.co.uk to promote its ethical credentials, make public its membership of the Ethical Trading Initiative and display its code of conduct. Primark went on to state that their suppliers had sub-contracted to others who had broken their code of conduct and decided to stop using the suppliers. Their decision to cease business with those suppliers also created an adverse effect in the media as it was claimed that it would have been more responsible on their part to agree to work more closely with suppliers to encourage them to improve their work practices. A year later and the Primark supplier controversy had not disappeared. Sir Stuart Rose, Executive Chairman of Marks and Spencer criticised Primark at a shareholders meeting and stated he would not sell a T-shirt for 2 in the UK. You cannot sell a T-shirt in the UK for 2 and pay the designer and pay for the raw materials and pay the manufacturer and pay the rents and pay the rates and pay the carriage and pay the insurance and pay the freight and pay a fair living wage to the person who made it. Sir Stuart Rose Executive Chairman of Marks and Spencer At the time Primark and Marks and Spencer had almost identical white T-shirts retailing at 1.50 and 5 respectively. However, Primark counterattacked and muddied the waters of the argument by confirming that M&S and Primark shared some suppliers and accusing them of hypocrisy. According to British retail expert, Mary Portas, Primark and the value sector in general are responsible for destroying good taste and wiping out independent clothing retailing. Portas is of the opinion that the aggressive actions of the value chains such as Primark are endangering the independent quality retailer and that consumers will eventually lose the heart and soul of independent fashion shopping. Trade figures seem to bear out her declarations. Independent clothing retailers saw their saw market share fall 0.6% to 7% over the 12 weeks to June 21 in 2009 whereas clothing multiples, including the value sector, saw market shares rise 1.6% to 27% over the same period. Although some analysts predicted that issues to do with business ethics and sustainability would lose ground as a result of the recession as consumers became more price sensitive, this has not always been the case.

The UK government has also attacked the trend for cheap throwaway fashion encouraged by the value chains because of the increase in waste it has created. Textiles are now the fastest growing type of household waste. Every year consumers in the UK buy two million tonnes of clothes of which 1.2m tonnes end up in landfill while just 300,000 tonnes are reused or recycled while the rest gathers dust in the homes of the consumers. A recent government investigation found the proportion of textile waste dumped at one council site had risen from 7% to 30% in a year due to what is now referred to as the Primark effect. In contrast, ethical fashion remains on the fringes of the mainstream fashion markets but there are indications that it is gaining ground. Fairtrade and organic cotton is slowly increasing. Oxfam and Marks and Spencer now collaborate over the reuse or recycling of clothes donated by M&S consumers. Ethical clothing brands such as People Tree, Sharkah Chakra and From Somewhere are appearing more frequently in the gaze of the public. For example, People Tree's recent collaboration with the film star Emma Watson, brought a rapid increase in sales for the company. The 2009 London Fashion Week, one of the major shows on the international fashion calendar, opened with the launch of Estethica a showcase of ethical designer fashion which has also gained government backing and was used by the Department of the Environment, Food and Rural Affairs for its own launch of its Sustainable Clothing Action Plan. The 37 designers in the Estethica showcase have to adhere to at least one of three principles organic, Fairtrade or recycled. There is some indication that mainstream players might begin to engage with the ethical, sustainable movement in fashion. In collaboration with ethical clothing pioneers From Somewhere, Tesco has created a range of recycled clothing made from the stores end of line stock for their Florence & Fred label. Tescos plan is to initiate a cradle-to-cradle system to upcycle waste within its own supply chain while still keeping its fashion credentials. The collection, staying true to From Somewheres signature look of body contour shapes and bright colours, a limited range of items will be available exclusively online through Tescos website and should appeal to the teenage and twenty-something market. This end of line Tesco stock, which would otherwise end up in landfill, is being produced in one of the most environmentally-friendly factories in the world. Not all ethical clothes companies have been as fortunate as From Somewhere and Ascension (formerly Adili) was forced to suspend shares and was subsequently sold to an investor for a token 1. Other ethical clothing retailers find it difficult to increase sales and break into more mainstream markets. Equa is a women's wear boutique based in Islington, London, the first to offer ethical fashion on the high street, founded in 2005. Committed to improving sustainability in the fashion industry, at Equa there are organic cotton collections, clothing made from other sustainable fabrics such as bamboo and soya, shoes that have been made using reconstituted leather dyed using environmentally friendly dyes and vegan accessories.
Sources: Gray, L. (2009) 'Primark effect' prompts government drive to cut clothes sent to landfill The th th Telegraph 20 February 2009. Whitworth, H. (2010) Tesco launches recycled clothing collection 7 March 2010 available at http://centreforsustainablefashion.wordpress.com/2010/03/07/tesco-launches-recycledth clothing-collection/ accessed 10 March 2010. Carter, K. (2010) Tesco launches recycled clothing collection nd th The Guardian Tuesday 2 March 2010. Shields, A. (2009) Primark sales continue to soar Retail Week 9 th July 2009. Weir, L. (2009) Portas: Primark is destroying UK indies 30 October 2009 available at: http://www.drapersonline.com/portas-primark-is-destroying-uk-indies/5007578.article accessed 9th March nd 2010. Denby, J. (2009) Primark threatening UK indies, says Portas 2 November 2009 available at http://www.retail-digital.com/Primark-threatening-UK-indies--says-Portas-_36947.aspx accessed 9th March st 2010. Oxberry, E. (2010) Primark pledges further ethical initiatives 21 January 2010 available at http://www.drapersonline.com/multiples/news/primark-pledges-further-ethical-initiatives/5009777.article rd accessed 12th March 2010. Creevy, J. (2010) M&S loses clothing share to Asda, Tesco and Primark 23 January 2010 available at http://www.drapersonline.com/multiples/news/ms-loses-clothing-share-to-asdatesco-and-primark/5009811.article accessed 12th March 2010.

Case taken from Emery, B. P. (2012) Sustainable Marketing Harlow: Pearson