Question

The Case:
The COVID-19 has extensively impacted almost every industry across the globe and has brought
great economic fluctuations for every business sector. However, the sectors that were greatly
affected and had extremely hard hit are the ones that come in the category of non-essential
spending. Having said this, branded clothing industry and branded footwear are two market giants
that fall in the category of non-essential spending, have seen major downfall over the past few
months. Specifically talking about Pakistani market, due to the lockdown imposed by government
these industries had suffered a lot and seen the toughest time.
What has been experienced by the designer made clothing industry worldwide, in the last few
months, is just the beginning of a ripple effect. The COVID-19 pandemic has alter the market
dynamics. It is observed that online shopping has replaced in-store shopping. During this
pandemic, majority of the renowned Pakistani clothing brands have heavily started marketing their
products through digital mediums such as Facebook and Instagram. Because of the ban imposed
by government due to pandemic Gul Ahmed, Khaadi, Saphire, Sana Safinaz, Nishat Linen and
Alkaram are some of the top notch clothing brands that have momentously took the benefit of
digital media to carry forward their business operations. Though their clientele and target market
is the same but the medium of being connected to them is changed. Previously they were using
their physical outlets for product sale now they have acquired digital mediums to target their
customers and product sale. Not only has this, but these renowned brands are offering lucrative
sales offers to catch the attention of target customers. It has never been observed that the renowned
brands are offering sales for such a prolonged period. Since, it is uncertain to predict the betterment
in economic condition of the country, this is the reason why majority of the business operations
are going online.
Requirement:
After reading the above case, which of the below product/market expansion grid strategy the
clothing industry is following during this pandemic and what benefits they could achieve through
it? Support your discussion with logical arguments.
1. Market Penetration
2. Product Development.
3. Market Development.
4. Diversification.
*Note: You are required to select only one strategy and mention at least 3 benefits to support your
answer. The definitions of strategies are not required.

Answer 1

With reference to the above case discussed regarding the renowned designer clothing brand of Pakistan whose sale has been immensely affected due to COVID 19 impact and lockdown, it's time to go online which they opted for.

To go online is the need of the hour to sustain their brand, customers, and overall sustainability of their living. The Pandemic has hit across all sectors and the economy of every sector has tanked. However, in my opinion, the clothing industry is following the Market Development.

Market development by online medium i.e FaceBook, Instagram, and other applicable mediums in their respective zones could be done by segmentation. The clothing brand as mentioned has the very first time opted for the digital mediums to catch the attention of target customers by offering lucrative sales offers.

The segmentation could be done as follows--

Redefining the highly engaged customers- Having an engaged segment is a must; however, with the rise in COVID-19 across the globe, it is the need of the hour to redefine engagement criteria in a segment that caters and targets to most active customers who continue to interact with your brand amid these trouble times. To redefine engagement, consider adding conditions around purchase history and profile properties that prompt engagement.

Engaging the VIP segment-
Just examine how recently the subscribers purchased or how frequently they do so. When the engaged segment is created focus on those who have clicked and opened the emails recently, and who have also done shopping either recently or multiple times in a specified timeframe.

How you define engagement will likely depend on your brand. However, the example indicates a highly engaged segment that purchased off-late. It uses the following criteria: Someone is in your newsletter list and has either opened or clicked an email at least once in the last 14 days or subscribed to your newsletter in the last 14 days, and placed at least one order in the last 30 days.

Segmenting with predictive analytics-

Segmenting using predictive analytics is another way to get granular in your targeting and focus on customers who are most likely to shop again soon.

Two useful predictive analytics features are:

Expected date of next order  

Customer lifetime value (CLV)

Targeting by location-
Location Proximity Customers

Location-based segments are a great way to target customers based on what is happening in their community as well as their proximity to your brick-and-mortar store (if you have one). Figuring out to target the right people with applicable information who is located nearby is really helpful.