Fat Face Case Study Report

Viktorija Kolosova/Q09854215/FFM606
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Student Name: Viktorija Kolosova
Student Number : Q09854215
Faculty: FCIS
Level of study: 6
Course title: Fashion Management with Marketing
Unit title: Contemporary Fashion Marketing Strategies
Assignment title: Case Study Report
Assignment tutor: Graeme CM Smith
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Contemporary fashion marketing strategies
Unit Code: FFM606
Assessment Type: Report
Assessment Title: Case Study report
Assessment Number: AE1
Unite Leader: Graeme CM Smith
Student Name: Viktorija Kolosova
Student Number: Q09854215
Level: 6
Fat face case study report

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Table of Contents
Contemporary fashion marketing strategies ...............................................3
Introduction ....................................................................................5
Fat face background...........................................................................6
Fat Face Current Market position ...........................................................6
Fat face mission statement ..................................................................7
Fat face vision statement ....................................................................7
Fat face values.................................................................................7
Macro environment Assessment .............................................................8
Analysis and evaluation of Fat face and its competitors............................... 11
Fat face porter’s value chain .............................................................. 15
Marketing objective ......................................................................... 17
SMART OBJECTIVES .......................................................................... 17
Ansoff growth matrix........................................................................ 18
Marketing programmes...................................................................... 20
Porter’s generic strategies ................................................................. 21
Conclusion and final justification ......................................................... 22
References.................................................................................... 25
Appendices.................................................................................... 29

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Introduction
This report will produce a strategic plan that will position Fat Face distinctively in
the current UK fashion retail environment. It will explore the company’s current
environment and measure competitors’ position. The strategic marketing planner
will identify a five year prospect strategy by outlining target goals and objectives.
Therefore, it will determine the main marketing programmes by means of
achieving those set goals and objectives.
(Facebook 2013)

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Fat face background
Fat Face is a British fashion brand established by two friends Jules Leaver and Tim
Slade who were skiers. The idea came to life when they begun to run out of money
to finance their skiing in the French Alps. The name ‘Fat Face’ was born by them
being inspired of their favourite black mountain La Face. They started their
business in 1988 by producing just a few t-shirts and sweatshirts. The first Fat Face
store was open in Fulham in 1992. (Fatface 2013)
Now, the brand has grown and became one of the most recognisable lifestyle
clothing and accessories retailer in the UK. It designs womenswear, menswear,
childrenswear, footwear and accessories. Its clothing lines are designed in outdoor
yet colourful styles which are cut generously for a comfortable fit, including
trousers, jeans, knitwear, dresses, tops, vests, jackets, jumpers and sleepwear.
Fat Face has their own accessories lines such as footwear, scarves, hats, gloves,
bags, wallets, belts, jewellery and watches. Also in their shops can be found
various choices for gifts such as laptop cases, tissues, notebooks, bottle openers
and even air fresheners. (Fatface 2013)
Nowadays, Fat Face has over two hundred stores in the UK and Ireland with
established e-commerce and wholesale operations. Through the multichannel
retail customers of Fat Face are always within easy reach of the brand. (Fatface
2013) The Sunday Times Fast Track stated that the Fat Face Company is estimated
to turnover of £25 million in 2013 and is recognised as one of the fastest growing
companies in Britain. (Fasttrack 2013)
Fat Face Current Market position
Fat Face is targeting the 35 to 55 year old male and female demographic. It has
positioned itself as the middle market orientated fashion retailer since opening
their first store in 1993.
Fat Face hired Sir Stuart Rose, who previously worked as a former boss for M&S, to
be the company’s chairman. (Chapman 2013) By putting the correct people in
place Fat Face will strengthen, expand and develop its operations.

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Fat face mission statement
Fat Face is a reliable British company who is committed to producing well-designed
quality clothing and accessories for people who embrace life outside the nine to
five. They deliver products and services of exceptional quality and reliability
consistent with their brand and their image. (Clarksvillage 2013) They always stay
true to their heritage and continue to pursue new growth opportunities. (Fatface
2013)
Their philosophy is ‘Life is Out There’. (Clarksvillage 2013)
Fat face vision statement
Since they began in 1988, their vision has been to design clothing that is being
loved by all their customers for life outside the work. Fat Face aims to inspire
customers and employees, to embrace life and search for new adventures and
experiences. (Fatface 2013)
Fat face values
Fat Face is dedicated to delight and satisfy their customers by providing a great
shopping experience whether it is in-store or online. They believe by inspiring
customers with their products it will lead them to go outdoors and try new things.
They also value the significance of employees who really share these values by
promoting teamwork, contribution and empowerment at all levels of the company.
(Fatface 2013)

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Macro environment Assessment
PESTLE ANALYSIS
Table 2.1 PESTLE Analysis FOR FAT FACE
Political
 Tax policy
 Employability
regulations
 Wage regulations
 Trading laws
 Law of supply and
demand
 Trade tariffs
 Labour
exploitation
Economic
 Recession
 Disposable income
 Unemployment
 Growing inflation
 Increase in
interest rates
Socio-cultural
 Demographics
 Fashion
consciousness
 Consumer buying
patterns
 Lifestyle
 Retail spending
 Celebrity
endorsements
Technological
 Marketing tools
 Production
 Availability of
resources
 Logistics
 EPOS systems
Legal
 Health and Safety
regulations
 Copyrights
 Consumer
protection
 Consumer Credit
Act
 Distance Selling
regulations
 The Sale of Goods
Act
Environmental
 Waste and
Recycling
 Personal Ethics
 Climate
 Animal welfare
 Corporate Social
Responsibility
(Brassington and Pettit 2006, p.49)
Political
There are existing laws on how the employees have to be treated. If Fat Face
follows all the set regulations then the company will have a respectful reputation
which can lead to continued success. (Legislation 2013)
Wage regulations can have a positive impact on Fat Face as with higher disposable
income customers who will come more often to the store or visit the website to
buy products. (Gov 2013)
Consumer protection is very important nowadays, if Fat Face treats its customers
fairly then they do not have to change their business practices to follow
agreements with the regulations. (Gov 2013)

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Fat Face by implementing precisely the law of supply and demand will continue to
be profitable hence building loyal relationships with its customers. For instance, an
increased demand on a particular product Fat Face has to react quickly and
provide customers with it. If it is not achieved the company may lose money unless
they do not raise prices. (Ehrbar 2008)
Economic
Recession affects the company’s prosperity. During recession time the government
might increase ‘value added tax’ which reduces the amount of disposable income
and Fat Face profit might decrease significantly. (Gov 2013)
The UK disposable income has increased by 0.4% (Businessweek 2013), while the
UK inflation rate is 2.1% (Tradingeconomics 2013) according to this data, prices on
goods and services are still growing, so it has a negative impact on Fat Face
prosperity as clothing is not people’s priority and they are not able to spend more
on clothing.
Socio-cultural
Fat Face can evaluate and research what demographic situation is in certain areas
and possibly open new stores or attract new potential target customer with the
new range of clothing and accessories. (Suttle 2013)
Fashion consciousness is a social influence on lifestyle. (Oxfordjournals 2013)
Nowadays, people are trying to live healthier lives, so Fat Face has a potential to
be successful in the very competitive market by constant representation of an
outdoor brand.
The celebrity endorsements are an excellent way to attract customers (Wisegeek
2013) and it has a very positive impact on the brand as it is always catching the
attention, especially if the chosen celebrity is on the wave of attractiveness. If Fat
Face will consider using celebrities, for the purpose of promoting their product,
there is a potential to succeed and increase brand awareness.
Technological
Marketing tools take part in communication with the loyal and potential
customers. Social media is very valuable and it is the most common way to
broadcast the information. (Brittanyh 2013) Fat Face is using many tools such as
Facebook pages, where they show all the latest collections in a very eye-catching
layout. Everyone can follow them on Twitter and on Pinterest websites. It is a good
approach of building the brand awareness and it does not cost a lot of money
which is efficient for the business.
Logistics is one of the most important components of a business. By dispatching
products the same day they were purchased through the online channel, Fat Face
can build an image of a brand with great customer service. (Fatface 2013)
It is beneficial for Fat Face to buy Electronic Point of Sale system (Epos 2013)
which will help them to control their stock in more convenient way. Moreover, Fat
Face is selling online so it will improve the business’ productivity and efficiency.

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Legal
By following the Sale of Goods Act (Securetrading 2012), Fat Face has an
opportunity and chance to avoid customers’ disappointment with the products, for
instance the product was bad quality. The brand can engage customers by
delivering high-quality clothing; however, if a customer is disappointed with a
product Fat Face should meet the procedures of returning or exchanging.
If Fat Face does meet health and safety regulations at all times, it will not damage
its status and will not pay a fine. They should provide their employees all the
required conditions to work. (Hse 2013)
Environmental
If Fat Face will follow the recycling regulations they will not harm the
environment. This is an opportunity for the brand as they could build a picture of
an eco-friendly company; this will show how much they care about the planet
which can lead to attracting and driving more customers into the store. (Gov 2013)
Climate is an opportunity for Fat Face, for instance, unexpected heat can raise
sales figures on summer products such as bikinis and hats. However, it can be a
threat if a weather disaster such as a hurricane which could possibly decrease sales
and slow down the supply chain. (Paddison 2013)

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Analysis and evaluation of Fat face and its
competitors
Primary Research
The questionnaire was conducted to complete online through Surveymonkey. There
were 75 respondents altogether. (See appendix 1)
Key Findings:
Respondents: 75
 Female: 46
 Male: 29
Shop at Fat Face:
 76% of respondents shop at Fat Face
 24% do not shop at Fat Face
76% of respondents usually shop for:
 outerwear
 jeans
 accessories
76% of respondents on how they are satisfied
with the customer service at Fat Face:
 60% quite satisfied
 20% neither satisfied nor dissatisfied
 14% somewhat satisfied
 6% extremely satisfied
Competitors of Fat Face:
 White Staff
 Animal
 Hollister
 Gap
 M&S
 USC
 Timberland
 Superdry
Suggestions to Fat Face how they
could improve their brand image:
 Design a new clothing line
 Increase advertising
 Follow the latest trends
 Less expensive clothing
 Celebrity endorsements

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Conclusion
According to the primary research, Fat Face needs to work in the advertisement
segment and the way they want to communicate with potential customers. One of
the main Fat Face parts of improvements is to introduce a new clothing line which
would represent the latest trends. This would help it to bring in new customers. It
needs to increase its brand awareness by advertising clothing. The people who
know about the brand and are using it are very loyal to it. They have trust in the
quality of the product and they want to be associated with it. However, Fat Face
should focus more on creating new designs and raise awareness which therefore
will bring in new potential consumers who could then become loyal customers,
hence increasing profitability.
Swot analysis
Table 3.1 FAT FACE SWOT ANALYSIS
Strengths
 Multichannel sales
 High-quality clothing
 Outdoor clothing
 Brand equity
 Range of sizes and shapes
 Increase in sales by 29% (July
2013) (Smith 2013)
Weaknesses
 Age limit
 Competitors
 Economic Recession
 Lack of styles
Opportunities
 Further expansion in the UK
 Creation of a new clothing range
 Celebrity endorsements
 Raise of minimum wage
 EPOS system
Threats
 Retailers with the similar
products’ range
 Increased taxation rates
 Unemployment of current and
potential Fat Face customers
(Brassington and Pettit 2006, p.1007)
According to table 3.1 Fat Face strengths and opportunities dominate over the
weaknesses and threats. Nevertheless, Fat Face wants to avoid any possible
threats and weaknesses with building the outstanding brand which is recognisable
amongst current and potential customers. To achieve this, Fat Face will design
unique clothing range, and there is a possibility they will create more feminine
style clothing lines, in purpose of reaching new customer base. With further
expansion Fat Face has an opportunity to reach new customer base and strengthen
relationships with existing customers.
Moreover, if Fat Face will start using celebrity endorsements it can make people
being more aware of the brand and its values. Therefore, Fat Face can achieve a
higher percentage of sales figures in the future.

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Competitors of Fat Face
Porter’s Five Forces
According to Porter’s Five Forces, it is important to be aware of competitors and
their products as it helps to analyse whether new products have the potential to
be profitable and what can be undertaken to compete effectively. (Rilley 2012)
The competitors of Fat Face are brands with similar targeted customer market and
in the offered product range. Fat Face competitors are listed below:
 White Staff
 Animal
 Hollister
 USC
 GAP
 M&S
 Timberland
 Superdry
Some of these competitors have a high amount of finance and marketing resources
available which give them an opportunity to compete effectively, for instance, if
there is a recession and demand is not as high they can invest more money in
advertising. During a recession these competitors can invest more in promotion,
therefore weaken other brands. Apart from these established companies, Fat Face
competitors are also internet-based retailers such as ASOS and Mywardrobe who
Figure 3.1 Porter’s Five Forces
(Porter 2008)

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sell clothing, including outdoor range and accessories. This could affect Fat Face’s
sales, prices and profitability in the future.
Bargaining power of consumers
Fat Face is a fashion brand who offers outdoor clothing for men and women aged
35 to 55. Its customer’s profile is an educated person, for instance doctor, lecturer
or assistant manager, who belong to B and C1 social groups with high amount of
disposable income; high buyer power. There are many other retailers that provide
relatively similar product lines to Fat Face; therefore, customers may require more
fashionable or innovative product line as compared to the current offerings.
Moreover, even though the current global economic downturn, the clothing
industry continues to grow with great product differentiation that means rivalry
within the industry is moderate.
Bargaining power of Suppliers
Supplier power in the worldwide industry has decreased through competition from
manufacturers in low-wage regions. (Wherefromwhere 2013) Fat Face makes their
garments in Bangladesh and in India. The company has no factories of its own, so
supplier power is high and they can raise prices, lower product quality and reduce
product availability. However, these suppliers have definite commitments to
pursue, stated in the agreement between them and Fat Face.
Threat of New Entrants is high as the fashion industry is a fast paced environment
with low entry barriers. Fat Face can lose their market share if there will be an
entrant with the similar product at alike or lower pricing points. However, they
can keep their customers to stay loyal by reacting on customers’ changing trends
and preferences.
Threat of Substitutes
Nowadays, clothing signifies the social class of a customer and a way of
representing his or her identity. A threat of close substitutes is high as there are
many substitutes circulating in the market; possible substitutes can be charity
shops and pop-up stores who offer similar products at a lower price. However, Fat
Face customers belong to the ‘Financially comfortable families’ class (Acorn 2013)
so they want to wear high-quality clothing, therefore demand for Fat Face will
continue to grow.

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Fat face porter’s value chain
The Porter’s Value Chain analysis is for gaining competitive advantages that will
add more value to the product and services, therefore the company will gain
marginal value for that product or service. (Saha 2011) Analyzed below are a few
elements of Porter’s Value Chain concerning Fat Face, in the writer’s opinion Fat
Face competitive advantages are.
Refer to figure 3.2 one of the most important components of inbound logistics is a
supplier. A supplier is the main source of getting a product in place and on time.
Fat Face supplier base is vital to meeting the company’s compulsory quality and
ethical standards, and ensuring that the product is available on time. (Fatface
2012) Through a conjunction of broadening the supplier base and strengthening
relationships with existing suppliers, Fat Face can minimise any over-reliance on a
particular supplier and develop the competitiveness of the product.
The company has production in Bangladesh and India. Fat Face focuses seriously on
the control of its operations and the quality of the final output of a product. They
look for the highest quality at every stage of production, for the purpose to ensure
that a customer will not receive a defective product, which therefore leads to
dissatisfactory.
Fat Face outbound logistics such as distribution is through three main channels:
stores in the UK and Ireland, e-commerce and wholesale. (Fatface 2013)
multichannel retailing gives a great chance of growth and opportunity to reach a
wider audience hence increase sales margins.
Figure 3.2 Porter’s Value Chain
(Kbrconsulting 2003)

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Fat Face is a recognised brand amongst the public. As their marketing tools they
use social media such as Facebook and Twitter. These methods are considered to
be very helpful for brand development. Analysing Fat Face Facebook page, their
brand image is of high-quality, comfortable and clothing for everyone.
The company’s communication after sales is very practical. Customers can return
items within 28 days after the purchase was made; returns are free of charge.
Now, they have introduced ‘Collect +’ which allows customers to drop their
unwanted items in their local stores. (Fatface 2013) According to the primary
research done, customers are satisfied with the customer service at Fat Face.
Fat Face opened new stores during the year of 2012 which has created over one
hundred new jobs. (Fatface 2012) According to the Porter’s Supply Chain, Fat
Face’s Secondary Activity was Human Resources who recruited and trained staff
members which provide an opportunity to get promoted and make a career within
the company.
According to their financial statement, (Fatface 2012) Fat Face progressed in their
ability of resolving to restrict price promotion to limited sale periods, re-
establishing the brand integrity and pricing policies. It has led to a sales increase
of 7% comparing to the previous financial year.

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Marketing objective
 To enlarge the overall market by increasing product innovation.
Fat Face can implement marketing objectives such as establishing an opening
market position by increasing its product innovation. Fat Face is a recognisable
company within the UK market. By increasing product innovation, for example,
create more fashionable clothing lines, it could attract a different range of
customers and increase the company’s sales profit as well as popularity amongst
customers.
SMART OBJECTIVES
 Fat Face is expecting to increase its product innovation and therefore
improve their position within the UK market by 30% by the 31st
December
2015.
Fat Face is a British brand, which foresee economic conditions and strive to remain
challenging. According to their given financial information (Fatface 2013), they are
increasing their market share every year by continuing to innovate and refine their
collections across all categories. One of the main areas that they strive to improve
is women’s wear, so by introducing new, more fashionable lines for women Fat
Face has an opportunity to grow. Fat Face strongly believes that with further
product innovation and development they will achieve the set objective by the 31st
of December 2015.
 Fat Face is going to domesticate the market by opening 15 new stores in the
UK by the 31st
December 2018.
Fat Face goal is challenging in a macro economic condition by creating different
but attractive and fashionable collections for the UK market. To achieve the set
objective Fat Face is going to open 15 new stores which will give them an
opportunity to enhance the brand awareness within the UK market and boost sales
margin which then leads to a chance for further expansion. Based on the research
conducted, Fat Face strongly believes, that the objective is achievable and
realistic which is expected to be achieved by the 31st
December 2018.

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Ansoff growth matrix
Ansoff Growth Matrix was developed by Igor Ansoff in 1957. He said that a business
has the prospect to grow by using one of four strategies. These strategies include
making the most of existing markets and products, developing new products or
emerging new target markets. (Learnmarketing 2013)
Market Penetration
 Increasing its market share within the fashion industry.
Market Development
 Expanding internationally
 Gaining new customers by opening new stores in different areas
 New distribution channels.
Product Development
 New product development such as cosmetics, perfume and jewellery
 New styles of clothing.
Diversification
 Create entirely different clothing ranges under the different a name, for
instance ‘Fat Face Chic’ to achieve greater brand leverage.
(Marketing-equity 2011)
Figure 4.1 Fat Face Ansoff Growth Matrix

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Fat Face aim is to continue to pursue new growth opportunities. (Fatface 2013)
According to Ansoff matrix, the suggested future for Fat Faces strategic direction
for growth is new product development which is a medium risk strategy because
the market is known and the product is new. Referring to the aim, a new product
development marketing strategy is a perfect choice to progress their business
within the UK market. The clothing market is growing rapidly and therefore it is
very important to stay competitive.
Fat Face has the potential to increase their market share by introducing a new and
innovative product to its existing market. One of the ways it can be achieved is the
designing of new, trendier clothing ranges which are possibly less expensive
(according to the primary research); it will allow approaching customers from
different segments as there is a possibility that the potential customers will be
intrigued by the new range. As a result, it can help the company strengthen their
relationships with loyal customers, further interaction with potential consumers
and improve the position within the market. Fat Face also can produce perfume
and cosmetic lines for women as well as for men, or extend the accessories line.
Moreover, Fat Face in the future can expand internationally by opening new
stores, for example, the United States. However, before entering the new market
Fat Face has to explore it, for instance, it can be America’s market where the
laws, cultural and personal preferences are different from the UK market. It
cannot be forgotten that the sizes and shapes of people are different in different
geographical locations. Therefore, when the company designs the lines they have
to keep this in mind to be able to succeed in their aim for growth.

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Marketing programmes
A series of 6 planned actions
 Advertising on social media networks
 Promotion
 Selling in new locations
 Celebrity endorsements
 Loyalty programs
 Creating new less expensive lines
Advertising on social media is crucial nowadays. For advertising Fat Face can use
Facebook adverts which are paid-for Sponsored Stories like ‘Pages You May Like’ to
increase numbers of visitors their actual page hence raise awareness of the brand
presence. Also Fat Face can create websites with their offered products’ ranges in
that country’s language which they want to enter, for example, if they are going
to emerge in the Russian market, they should present their offers in the Russian
language.
In terms of promotion, an interactive catwalk show could be organised and posted
on the website, including social media to help visualise garments and how they
look on a body. Moreover, advertising on magazines or billboards help to spread
the information and create a buzz as it is one of the strongest marketing methods
to make people talk and visit the store.
Selling products in more locations will raise consumer awareness of Fat Face
offerings, especially with a wide, more innovative range in offer.
Celebrity endorsements are a good way to promote and present brand image. It
always fascinates people and gives them a reason to talk about it with others
which are major factors of a company’s enhancement; it can be either criticism or
positive feedback. Fat Face with a use of celebrities who are popular around the
world can help build an iconic and desired brand.
Loyalty programs will give a customer motivation to come back into store to buy
more while the company has a chance to enhance their image in the customer’s
eyes. Under the program, customer collects points based on purchase activity and
when there are a certain amount of points then it can be exchanged for a real
product in the store.
In addition to a new product development, Fat Face can set lower price points
which therefore can give the company the ability to catch the attention of a wide
variety of people while increasing sales and brand knowledge. With the wide
distribution of clothing, Fat Face can stay competitive and successful company. Fat
Face should evolve at all times as the fashion industry is a very competitive
environment.

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Porter’s generic strategies
Porter’s Generic Strategies was developed by Michael Porter in 1980. These
strategies were designed for a use of a company to gain competitive advantages.
These three are: cost leadership, differentiation and focus. (Economictimes 2013)
(Mindtools 2013)
Fat Face at the moment is between ‘differentiation’ and ‘focus’. They are
concentrating on a limited part of the market, the outdoor market segment. The
loyal customers believe that they are creating clothing that is perceived to be
unique. However, the suggested strategy for Fat Face is moving onto
‘differentiation’ by continuing to offer outdoor ranges, besides of entirely new and
innovative clothing lines, which perhaps is designed to attract a younger customer
base. By adding the value of the uniqueness of this new range may allow them to
dominate over their rivals. Therefore, Fat Face can accomplish that future and its
customers will perceive their product to be different and better than their
competitors.
Moreover, Fat Face needs to invest in advertising, according to the primary
research, by means of promoting the brand. By being eye-catching and creative
advertising, which demonstrates the image of product distinctiveness, they will
attract customers to visit a store and let them compete effectively within the
market.
Figure 4.1 Porter’s Generic Strategies

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Conclusion and final justification
Fat Face aims to inspire customers and employees, to embrace life and search for
new adventures and experiences. Fat Face objective is to enlarge the overall
market by increasing product innovation. Below is shown a ‘Balanced Scorecard’
strategy tool to measure Fat Faces performance that focuses attention on the four
segments. (Investopedia 2013)
(Smartdraw 2013)
Learning and Growth
According to figure 5.1 to achieve the vision of inspiring employees Fat Face can
improve their culture by staff training, along with more open participation and
engagement. It is important to offer consistent self-improvement for employees as
they are the representatives of a company. Empowering a workforce and their
knowledge about the products and company is the key to success in the industry.
To measure the employees’ satisfaction, Fat Face can conduct staff surveys to get
feedback on how they are satisfied with current training techniques and if there
are any suggestions for improvements.
Figure 5.1 Balanced Scorecard Strategy

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Business Processes
Fat Face mission is to produce high-quality clothing and accessories. To achieve
the mission Fat Face must excel at business processes such as a new product
development to satisfy customers’ requirements and maintain their needs; it will
make them competitive and a profitable company. The success of a new product
can be measured through the store traffic and the amount of social media
followers.
Customer
Fat Face objectives are to increase value for money, increase customers’
satisfaction and decrease complaints. Increasing customers’ satisfaction can be
achieved by creating innovative collections that will satisfy existing and emerging
customer needs. Increased innovation and operational efficiency will allow Fat
Face to create better value for money products. In terms of decreasing the number
of complaints, Fat Face has to offer exceptional customer service and continue to
produce high-quality clothing to impress their customers. How customers think
about the brand can be measured by surveying customers through e-mails and in-
store, and through mystery shopping for the purpose to collect responses on if Fat
Face meets the customers’ needs and how customers are fulfilled with the new
product.
Financial
Fat Face objective is to increase profitability hence a higher customer base. To
enlarge the company’s effectiveness Fat Face can increase market share by
opening new stores across the UK to strengthen their position within the market.
The new stores and innovative product will enhance customers’ curiosity in brand
which leads to a growing productivity. Success can be measured by growth in sales
revenue or calculating a company’s financial performance by EBITDA calculation
(Earnings before Interest, Taxes, Depreciation and Amortization). (Investopedia
2013)
Key Performance Indicators or KPI’s
One of Fat Face SMART objectives is to increase its product innovation and
therefore improve their position within the UK market by 30% by the 31st
December
2015. Fat Face forecasts economic conditions and strives to remain challenging
within the fashion industry. According to the set objective, Fat Face is competing
effectively and is going to design an entirely different collection to attract a
diverse customer base. Therefore it will give the company an opportunity to grow
and increase brand awareness, which is brought by product innovation. The main
performance indicator of growth will be the measure of sales growth year-by-year;
therefore the sales figures will indicate how successful the new collection launch
is. The key performance indicator to measure the customer satisfaction will be
through the call centre, in-store and e-mail surveying which will indicate whether
Fat Face has achieved brand awareness or satisfactory. Customer satisfaction for
the business is vital as they are likely to recommend the place to shop at.

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The second SMART objective of Fat Face is to increase the domestic market by
opening 15 new stores in the UK by the 31st
December 2018. By continuing to open
new stores across the UK, it will increase their market share hence increase the
sales margin. Selling in new locations will help Fat Face to strengthen their market
position and build stronger relationships with consumers. Moreover, with the
innovative product development they will enhance the interest of people who have
never shopped at Fat Face before. The key performance indicator is the measure
of growing productivity or growth in sales after the shops are in operation. This
will help to assess if the set objective was achieved.
To conclude, Fat Face is a business which strives to achieve growth and
profitability. To combine the two SMART objectives, Fat Face has the potential to
succeed and compete efficiently in the fashion industry. Fat Face by launching a
new product line and further expansion within the UK market can improve their
sales figures. In support for achieving the objectives, it can be accompanied with
advertising such as billboards and television adverts, as well as celebrity
endorsements to attract attention and be noticed.

25
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28
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banner1.jpg

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Appendices
App. 1

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