Runway Seven Company

RunwaySeven Company

Runwayseven is a clothelinecompanylocatedin Shoal Creek in thehighlandvillagesin theunitedstateof America. Thefabriclinedealswith femalecollectionslike trousers,tops,hats,bags,dresses,shoesandotherfemalewear.Thecompanyboastsof providingthetrendiestfashionsby havingtheabilityto updatethestoresafter everyseven days.Customers,therefore,havetheassuranceof findingsomething neweverytimetheypopinto thestores.Currently, thecompanyhas outletsin seventeen locationsin theUnited States andforthisreasonitenjoysa significantmarketshare.Thecostof itemssoldin thestoresreflectstheprevailingmarketpricesforvariousclothes.However,theydifferslightlydue to theregularpromotional effortsof thecompanyin an effortto retaincustomerloyaltyandbeatcompletionfrom theothershops.Althoughthecompanykickedoff at theShoal Creek, itcontinuesto exhibitanactivegrowth.Theseventeen outletscurrently under itnameis justpartof theplanto openstoresallover thecountry(Runway Seven).

Inorderto be differentfrom theothers companies,thecompanycombinesdesignsmadeby someof theworld’smostfamed manufacturersto givetheir customersa touchof internationalelegance.Thestaffcreatesa personalattachmentwith thecustomersby keepinga recordof their shoppinghabitsandclothestastes.Whenever a regularcustomerstepsinto thestores,thestaffcallher by nameandthewarmwelcomegivento them strengthenstheir loyaltyto thecompany.Thecompanygoesto an extentof sendingnotificationson thearrivalsof newclothesto customersbased on their tastes(Burret 3).

Customeranalysis

Thecompanyhas aparticulardemographic targetof womenof allagesandgirls.Due to their shoppinghabitswherebytheytendto accompanyeachotherwhenupdatingtheir wardrobes,thecompanytakesadvantageof thisto providetheir particulartastes.Thevastcollectionof storesfacilitatesshoppingforallitemsin one shop.Thesatisfiedcustomersmakeregularvisitto thestoresbecauseof theassurancethattheywill findsomething neweveryweek.Thecompanyroots its culturein movingwith time.Themostcurrentclothesare availablein thestoresimmediatelyafter beinglaunched(Widdicombe 5).

Thetarget customers’ behavior gets a reflection in the clothes stockedin the store. In TCU, for example, the customers are trend andfashion sensitive and they are likely to drop into the shopsregularly for new items. Girls and their mothers tend to shoptogether and the company takes care of this need by stocking theshops with their respective clothes. The location of the storesoccurs in places with potential buyers like TUC, Firewall and FortWorth, all which are fashion sensitive.

Totake care of the needs of the university and college students, thecompany locates its stores near the schools. A good example is thestore near the TUC. The store customizes the tastes of the studentsso that they can wear the most trending jeans, tops, shoes anddresses. The needs for these customers differ from those of theelder women due to their exposure. They are, therefore , choosy butthe stores take care of the need.

Thestoreshaveone of theexcellentservicesthat serveas animportantinputto thelargereffortsof makingcustomerscontent. Anyinquiriesregardingtheitemssoldin thestores,their prices,andshippingdetailsattractnocharges.Itemscan alsobe returnedto thestoreswithin thestipulated timein thedifferentstores.Adistinguishingcharacteristicof theventureis thatitemploystheservicesof stylistswhohelpcustomersin pickingthemostfavorablecolorsanddesign.

SWOTANALYSIS

Strengths

Firstthecompanyenjoysa strongcustomerloyaltywherebythere are fewchancesof customerschangingshopsonce theyvisitthestores.Itis attributable to theattachmentcreatedby thestaffandthebuyers.Reachingout to informthem of thearrivalof a newbrandis veryrelevantto thecustomerssince theydon’thaveto movefrom one shopto anotherlookingfora suitablecloth(Siems 9).

Secondly,thecompanyhas founda placein someof thecountriesshoppingdestinations.Thestoresat Firewall, Tulsa, Fort Worth, Huston, Midland andBranson are someof themostvisited. Althoughthere is stiffcompetition,thestorescustomized measureshelpthecompanyto maintainhighsales.

Anothermajorstrengthis thatunlike manycompanies,runway seven imports clothesfrom internationalmanufacturers.Mostbigclothelinesspecializein certainbrands.Forcustomerswith a diversetaste,theyfindrunwayseven storesa favorableplaceto shop.

Weaknesses

Thediversification of clothesandrigorouschangein thestockmay resultin customersfailingto findfavorableclothesin acertainvisit.Forexample,thestoresare not ableto providenewstockforall theitemsat once.Thealternating upgrading may not suitcustomerslookingfora newproductwhentheypopin to shopfora particularitem.

Secondly,thedemographic coverage is quitenarrowwith referenceto othershopscompetingwith in thedifferentregions.Forfamiliesthat shoptogetherforall their clothneeds,theshopis not an excellentstop.Specialization putsoff menandboys,anda familymay opt to visitashopthatstocksclothesforbothgenders(Andrey 4).

Threats

Thereare manyboutiques operatingin theareasthat offerstiffcompetitionto Runway Seven. Mostof them havea comprehensivestockof allagesacross thegender.Therefore,thecompaniesscrambleforcustomersby usingvariouspromotional campaignslike discountsandpricereduction. The major competitors are Fashion 21, Brason Landing and TJX whichis one of the most popular apparel outlets. TJX offers clothes forthe whole family and, therefore, it is a threat to the company.

Thereis alsothreatemanatingfrom pricing of theproducts.Asmentionedearlier,thecompanygivesits customersan internationaltasteand,therefore,itimportssomeclothes.Thepricesf theimporteditemsbecomehighdue to theshippingcosts.Theothercompaniesofferinglocalbrandssettheir priceslower.Runway Seven ha to adjustthepriceto reflecta fairadoptionof theprevailingprices.

Opportunities

Thegrowthandcontinueduseof thesocialmedia is an opportunityforthecompanyto promoteits clothes.Thecompanyhas a Facebook pagewherebyshopperscan getupdates. With theinventionof Instagram andothersites,thecompanycan gainmorecustomersthrough them.

Secondly,thelocationsof thevariousstoresare strategicin thattheneighborhoodshavea richshoppinghistory.Thedemography of theregionsalsofavorstheshops.Forexample,theshopsat Fort Worth, firewall andHuston enjoyafairlyaffluentandtrendsensitivedemographic group.

Thecompany’spromotional strategy

Forthecompanyto controla largemarketsegmentandconsequently increasethesales,thecompanyappliesseveralpromotional mix measures.First,theshopshavea commendablepublicrelationsstrategywherebycustomersreceivea warmwelcomewheretheyvisitthestores.Theyalsofollowu p their customersby sendingthem notesandremindersanytimetheypreferredclothesarrive.There is alsoa setof salespromotionmechanismthat involvessettingtheir pricesa bitlowerthan thoseof their competitorsand,therefore,commandstheattentionof shoppers.There are alsodiscountsthatrangefrom 20% -25% in thevariousstores(Lutz 3).Thecompanyalsoarrangesshippingforcustomersin a far of places.Thecompanyalsoadvertisesits productson socialmediaandits websites. In thewebsite, there is a listof all thestoresandtheir locations.Through a platformknownas “your weeklyshoppinghabit,”thecompanygivesa listandphotos of thenewarrivals,andthisattractsa goodnumberof customers.

References

Ardrey,Jess. FormerlyApricot Lane, Runway Seven Hosts Grand opening.Arkansas: Arkansas Business Publishing Company, 2012. Print.

Burret,Pippe, Bollier, Tuner. Name Change: Runway Seven. CommunityImpact, 2015.Web.

Lutz,Ashley. 51 Companies That Are Changing The Way We Shop. BusinessInsider,2013, 3. Web.

RunwaySeven. Yourweekly shopping guide.2014. Web.

Siems,Bethany. Apricot Boutique Has A New Name- Runway. ThePromenade,2015. Web.

Widdicombe,Lizzie. The Plus Side: Figured-Fashion Gets A New Look. TheNew Yorker,2014, 7. Print.