Republic of the Philippines

Northwest Samar State University

Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
ISO 9001:2015 Certified Telefax: (055) 2093657

Major Course Output in

Marketing 8
Retail Management

A Market Analysis for MorbÉ

Apparel

Prepared by:
Danica Elaine D. Bermoy
BSBA3 Student

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Contents
Section 1: Introduction..................................................................3

Section 2: Industry Description and Outlook..............................4

Section 3: Target Market...............................................................5

Section 4: Market Need.................................................................5

Section 5: Market Growth..............................................................6

Section 6: Market Trends..............................................................6

Section 7: Market Research Testing............................................7

Section 8: Competitive Analysis..................................................8

Section 9: SWOT Analysis............................................................8

Section 10: Barriers to Entry........................................................9

Section 11: Regulations................................................................9

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Section 1: Introduction
Many of the world's most profitable businesses started small. As a

start-up, it was incredibly difficult to build a large and profitable company in the

past without a large sum of money to open a factory or purchase a fleet of

trading vessels, for instance. However, with every hugely popular venture,

thousands more fade into obscurity, which is why companies worth a billion

dollars or more are jokingly referred to as "unicorns," a reference to their

prevalence. However, due to a lack of a coherent project planning strategy, a

diverse professional team, underdeveloped soft skills, a step-by-step plan for

attracting and using investment, and a robust marketing research framework,

more than half of investment projects fail.

It is encouraged to implement a thorough marketing analysis, taking

into account the macro, micro, and intra-corporate environments, and using

marketing tools in conjunction with the analysis of each variable, to solve

several management problems and attract the required amount of investment.

In modern marketing theory and practice, there are many methods for

marketing research, but they are not systematized, popularized, or have a

poor descriptive nature. The success of a startup is determined not only by its

financial resources but also on high-quality marketing analysis, information

tools, and material and manpower resources.

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Section 2: Industry Description and Outlook

The Apparel Industry consists of companies that design and sell

clothing, footwear and accessories. Product categories include everything

from basics, such as underwear, to luxury items, for example, cashmere

sweaters and alligator-skin handbags. Apparel firms used to be wholesalers,

selling vast amounts of products to retailers, who then marked them up and

marketed them to customers at a profit. However, distinguishing between

wholesalers and retailers has become more difficult; most clothing firms today

have both forms of operations.

The apparel industry is highly competitive and fragmented. There are a

few big players, but there are also a ton of specialty stores and private

businesses that appeal to unique populations. General merchandisers and

international firms also add to the sector's competitiveness. As a result, in

order to thrive, companies in the apparel industry must be flexible and highly

efficient. It's also critical to have the right product; fashion trends shift

constantly, and businesses must rapidly adjust to changing customer

preferences.

Stocks in the apparel industry are extremely unstable. While clothing is

a basic need, people have a lot of freedom in terms of when and how much

they spend on it. Clothing sales are normally lively when times are good.

However, during periods of economic uncertainty and contraction, clothing is

an area where people can easily cut costs.

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Section 3: Target Market
Men and women between the ages of 18 and 55, with mid-range

incomes, make up the target market. The target customer is a fashionista who

follows the latest trends and lives in a city. They're either buying something for

themselves or for their kids. MorbÉ Apparel intended to reach customers who

are really concerned with getting the most up-to-date and trendy clothes and

accessories at a reasonable price.

Section 4: Market Need

Expressing your true self can somewhat be connected with fashion.

Clothes, accessories may represent who you are, how you're feeling at the

time, and even what you want to accomplish in life. Always keep in mind that

whatever you wear should represent your inner self. Your personal style

represents your personality, character, mood, and style, as well as who you

are as an individual. MorbÉ Apparel absolutely acknowledges this notion and

wants Filipinos all over the world to exhibits themselves fearlessly and be

more confident with their own skin. Morbé Apparel consider this as an

opportunity to further expand our business and enter the world of fashion.

Providing men and women of all colors and sizes, quality-designed clothes as

a celebration of embracing our uniqueness and beauty.

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Section 5: Market Growth

Mor bÉ appar el
Projected Sales
1400000

1200000
Estimated Amount of Sales

1000000

800000

600000

400000

200000

0
2021 2022 2023 2024 2025
Year

The next five years we expect the MorbÉ Apparel to grow and gradually

increase its sales every year. For the target market we also expect to reach

more client not just here in region VIII but for the entire country.

Section 6: Market Trends

A call for the Intense and flamboyant started the year 2020. The abrupt

transition to work-from-home arrangements forced everybody to slip into

something cozier with the advent of the COVID-19 pandemic. Comfort,

mobility, and functionality will continue to be essential in 2021. The financial

anxiety spurred by the economic downturn emphasizes consumer needs

rather than commercial concepts. The desire to stay at home sparked a

renewed interest in flexible, easy-to-style, and easy-to-wear outfits.

Consumers' shopping habits were unaffected by the pandemic. However,

there is a trend toward more functional products. Fashion items are now seen

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as long-term investments that would outlast the pandemic.

Long dresses and skirts with slim silhouettes are common among

women. Loungewear reigns supreme, with print and texture taking precedence

over embellishments. Soft crochet gives an artisanal comfy vibe, while historic

details and openwork embroidery bring romance to easy shapes. In the

Philippines, loungewear sales have increased dramatically, demonstrating

how customers have adjusted to the pandemic and developed their own new

normal at home. Ribs and shirring add a soft touch to the overall nightwear

look, while rustic fringing lends a boho vibe to the outfit.

Fitted styles are also common among men. Crew-neck sweatshirts are

still the most comfortable choice, while universal cover-ups and oversized cuts

offer layered slouchy looks. The emphasis is on sets and coordinated pieces,

particularly when paired with parka, bomber, and track jackets. The work-from-

home setup also spawned a trend known as "Above the Keyboard Dressing,"

which emphasizes visible elements such as necklines for a professional look.

Section 7: Market Research Testing

MorbÉ Apparel conducted a research of at least three local clothing

businesses here in Calbayog and ask the store personnel some question –

average 2-3 questions. Including customers who passed by or went inside the

store but didn’t buy. We also did research regarding the background, and

history of some of the well-known clothing businesses here in the locality.

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Section 8: Competitive Analysis
MorbÉ Apparel main competitor are existing local and international

clothing business in the region such as Bench, Oxygen, Penshoppe, Forever

21, and Regatta. Some of this brand are known to be selling not just clothes

but intimate wear, footwear, fragrance, accessories, skincare and even

cosmetics.

Section 9: SWOT Analysis

The following SWOT analysis explains the strengths and weaknesses

of the business.

SWOT ANALYSIS
STRENGHTS OPPORTUNITIES
 All the raw materials in the  Ongoing expansion for online
manufacturing of apparels sales.
comes of locally produced
markets.
 Prices of the products were
low compared to its
competitors. But the quality is
outstanding.

WEAKNESSES THREATS
 Constant changes of fashion  Competition from well-known
makes clothing businesses international and clothing
change all their nature of businesses.
apparel to make it more  Changes in regulation.
appealing rather than to its  Competitors can offer similar
competitors. products quickly.
 Limited start-up cost.

Figure 1. Illustration of SWOT Analysis of MorbÉ Apparel

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Section 10: Barriers to Entry
The major barriers to entry in the fashion retailing industry are structural

as well as financial. There are numerous outlets for online retailing these days,

as well as open-air markets and pop-up stores—innovations that have

reduced some of the retailer's costs. However, since the market is so

competitive, survival, not just success, is more important than ever. Being in

the right position at the right time, with the right product at the right price, is

more important than ever. This make-or-break aspect is complicated by the

speed of fashion, where inventories can change weekly, and accurate

forecasting of trends for the next season is critical but depends on the

manufacturing lead time.

Section 11: Regulations

Regulations can actually be counted as a barrier to entry. Compliance

costs and the possibility of lawsuits are enough to discourage new products or

businesses from entering the market. Smaller businesses bear a

disproportionate amount of the burden for compliance and licensing.

Businesses are required to comply all the necessary permit and clearance

before operation. Including; registration of business name; applying for a tax

ID number, Insurance such as; general liability insurance; product liability

insurance; commercial property insurance; business permit; and license.

Furthermore, the business must also comply with the environmental regulation

such as solid waste management in order to efficiently handle waste that may

be emitted during business operation.

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