The case “Urban brands and TSG Capital Group, LLC” basically depicts the situation where Joe Sitt initiated the business under the brand name Urban Brand. The company has become a successful entity and it has been able to open up 21 stores that have been serving as a retailer of ethnic clothing.
The target market for the company has been women who basically belong to the ethnic backgrounds and are also facing significant challenges and complications in finding the extra size due to their different and large structure. The women are eventually overlooked by many other businesses and therefore, the market has quite a large scope and focus which was explored by the Urban Brands.
Since the target market is basically moderate income level and also an urge to match the different fashions and styles that are within the market, the company worked closely to cater the needs of the market in the most efficient manner.
As the research confirms, there is no any competitor in the market for ethnic clothing, the chances of high brand loyalty for the company are quite obvious for Urban Brand. The company further aims to open up new stores and penetrate further in the market.Analysis
Sitt has a strong and a firm family background where they have been serving the market as ethnic cloth manufacturer; however, they do not have any prior experience of retail marketing. Since they do not have the experience of retailing therefore, the company has been unable to analyze the customer behavior.
The lack of specialty within the retail marketing of women clothing therefore the management is unable to have a strong connection on the buying behavior, choices and preferences of the market. The financial crisis within the United States economy is also a concern for the where the consumers have restricted their buying patterns and are focused on spending limited money.
The lack of circumstantial experience in the market has increased the abrupt swing with respect to the economic downturn which has make the company focus on a complicated behavior of the Hispanic women consumers for the company.Issues and challenges
The case depicts the situation to illustrate the methods of the private equity investors to basically asses the overall value of the different market opportunities. In this situation, a plus size clothing retailer that is targeting the African American and also the Hispanic women is the target market for the company.
The case discusses the various issues that include the niche market, evaluation of market potential and urban development. The protagonist, a private-equity partner, must determine the market viability of an investment opportunity offered to his firm.
The reasons for the issues that have been evident in the current situation have been solely because the company has been unable to expand itself in an organized manner. In spite opening up 21 stores, the company has not reached out to the larger market which is still an untapped entity in the market.Recommendations
Based on the issues presented in the case, the recommendation for the company and its management shall be to extend the success of the organization in local as well as international markets. The most appropriate method of expansion shall be to offer franchise to other entrepreneurs who have the capital and investment to penetrate in the market. This will be the most feasible option and it shall help Urban Brand to actually increase its market presence without making any further investment.
Along with this, the company should look to keep complete check and balance of the situation in an organized manner where the decision making should be made in order to train the new franchise owners to work along the guidelines of the organization.
Another recommended solution for the company shall be to enter new markets of Asia also where there are also women who are of large structure and find difficulty in finding clothes of their size. Therefore, at least one store in all major cities of such countries will be a feasible option for the company.
The reason for the above recommendations is solely because the market is still untapped and it needs to be catered in an efficient and organized manner. The decision therefore needs to be made by the management in the correct direction.
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