recommendation and conclusion

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FOREVER 21 2

Marketing Management Individual Project Module 6 (MMIP)

Faith Chibuzor Ogbonna

School of Business, Liberty University

Author Note

Faith Chibuzor Ogbonna

I have no known conflict of interest to disclose.

Correspondence concerning this article should be addressed to Faith Chibuzor Ogbonna

Email: [email protected]

Q1. Describe the support services needed by buyers of the product/service. Describe the support services offered by the firm’s main competitor. How are they different? 

Buyers need advice when making purchases to make the correct purchase that best fits their needs, is informed on how to use the products and get replacements for damaged products. They also need to be welcomed and acknowledged for visiting the stores and have the purchased products well packaged. Forever 21’s support services include assurance, responsiveness, empathy, and the availability of physical facilities providing the products where employees respond to customer concerns effectively and professionally on-store and through the company’s website. It also allows the return of products for exchange online or in-store for any inconveniences according to the company’s return policy (Forever 21, 2020). American Eagle Outfitters, one of Forever 21’s main competitors, offers its customers discounts on first purchase, and free shipping. The company also introduced a mobile application that allows customers to access the products online through their mobile devices. It also allows the return of products for exchange based on the company’s return policy (American Eagle, 2020).

The customer several support services offered by the two companies are similar and are aimed at improving customer satisfaction and loyalty.

Q2. Describe post-sale service arrangements the firm does or should provide. How does the firm’s repair/service efforts impact customer satisfaction?

           The warranty of the products is one of the common post-sale services that companies should provide to customers. Forever 21 gives warranty for their products which allows their consumers to return or exchange the products under their exchange and return policy. The policy applies to both mobile applications and the website that direct customers to exchange and return products in-store or online. All products can only be exchanged or returned to the stores that are within the country where they were purchased within a specified period. Purchases made online through the website should have slips showing when the merchandise to be returned or exchanged. Service efforts have improved customer satisfaction and loyalty. 

Q3. Discuss the firm’s new product screening process. Discuss possible sources of new product ideas.            

           Forever 21 production model involves the use of large fashion houses’ designs allowing the company to produce its new products faster than its competitors. The company moves with speed after the latest styles are displayed in trade shows or runways to duplicate them. Forever 21 relies on its journeyman designers located across the world to produce and take the new fashion styles to the shelves often before the original styles are displayed on the shelves. The production model has allowed Forever 21 to shorten the time taken from design to rack from months to weeks, with the most mid-market competitors taking up to six months (Roll, 2018). However, the strategy has attracted lawsuits against Forever 21 for piracy that has allowed the company to sell expensive designs at lower prices than other brands.

Q4. Discuss the firm’s pricing method or methods. Explain the price adaptations (discounts, promotions, etc.) the firm should use.

           Forever 21 uses an aggressive pricing strategy to meet the fashion demands of its customers at a low price. The pricing method has earned the company its reputation and attracted a positive response from its customers. Forever 21 has been able to provide what it has promised its customers over the years by putting in place policies that allow it to make qualitative, pocket-friendly products that cater to the needs of all customers, including high-end customers. However, the company can attract more customers by adapting its pricing model to suit different prevailing incomes, consumer demands, and geographical areas. It can maintain lower prices than its competitors across different markets but make price variations based on the classes of customers in different geographical areas. Also, products with higher demand should have a higher price tag than those with lower demand. 

Q5. Discuss the firm’s distribution strategy. Explain the channels used to distribute the product. 

           Forever 21 has a network of distributors across different countries around the world. The company has over 600 retail stores spread across the United States, Europe, Asia, Africa, and Middle-East. It has strategically established the major outlets in countries with higher socioeconomic status such as the United States, United Kingdom, Brazil, Japan, China, Australia, Germany, and India (Forever 21, 2020). About 60 percent of Forever 21’s total production occurs in manufacturing units located in China (Keller & Brexendorf, 2019). The company has a wide distribution network and channel consisting of franchise owners, suppliers, and vendors. The franchise owners are convenience stores that operate under a license which allows them to use Forever 21’s brand name to sell their designer clothes and accessories. The suppliers provide the company’s products to the retailers, while the vendors sell the company’s products. 

References

American Eagle. (2020). Call us. https://www.ae.com/us/en/content/help/call-us

Forever 21. (2020). About Us. https://www.forever21.com/us/shop/info/aboutus

Forever 21. (2020). Contact us. https://www.forever21.com/us/shop/info/contactus

Keller, K. L., & Brexendorf, T. O. (2019). Measuring brand equity. In Handbuch Markenführung (pp. 1409-1439). Springer Gabler, Wiesbaden. http://doi-org-443.webvpn.fjmu.edu.cn/10.1007/978-3-658-13342-9_72

Roll, M. (2018, March). Forever 21 – Fast fashion retail brand with an edge. https://martinroll.com/resources/articles/branding/forever21-fast-fashion-with-an-edge/