Market Segmentation

In describing the company's market segment, the business targets specific customers within the
larger group of all customers for that type of service or product. Market segmentation seeks to
identify targeted groups of consumers to tailor products and branding in a way that is attractive
to the group. Market segmentation helps companies minimize risk by figuring out which
products are the most likely to earn a share of a target market and the best ways to market and
deliver those products to the market. With risk minimized and clarity about the marketing and
delivery of a product heightened, a company can then focus its resources on efforts likely to be
the most profitable. Market segmentation can also increase a company's demographic reach
and may help the company discover products or services they hadn't previously considered.. By
developing specific plans for specific products with target audiences in mind, a company can
increase its chances of generating sales and being more efficient with resources.

1. Teenagers to young adults - Marketers became aware of the pattern and began creating
goods and advertisements tailored specifically for teenagers. Teenagers and young people
have been an important consumer demographic ever since. Young people place a high value on
authenticity because they want the brands they support to reflect their tastes and values.
Because they have an impact on their friends' and families' purchasing decisions, young people
make such valuable consumers. A brand or product develops an image of being "cool" if it is
well-liked by young people.

2. Variety Seekers – Variety seekers provides an effective market segmentation standard for
enterprises. This is to satisfy their desire to search for an alternative products. Customer
satisfaction is crucial to the success of your business. It is much more cost-effective to invest in
retaining existing customers rather than constantly chasing new ones. If you focus on customer
satisfaction, then those that buy from you are much more likely to buy from you again. This
increases the lifetime value of that customer that is the amount they spend with you over their
entire lifetime. When customers keep coming back to buy from you, your return on investment
from their customer acquisition cost increases. As a result, satisfied customers are more loyal
and loyal customers are more profitable for your business.

3. Fashion Icon – Fashion icon is the one who tend to design, model, or markets high-fashion
clothing or who is an ardent follower or consumer of the latest clothing fashions. This is an
influential person that may attract more consumers to purchase in Bench. The market is quite a
huge one, and it continues to grow, catching the attention of some of the leading established
brands in the fashion industry. This set of people prioritize brands they love, but it needs to be
affordable enough to purchase. While being affordable, versatility is also crucial.

4. People looking for a quick and easy shopping experience - Although consumers believe that
there’s no distinction in between grocery store or supermarket, the industry disagrees. With their
wide selection of products and services, they are able to cater to a broad range of people,
making the target market for convenience stores incredibly diverse. Some others need to shop
out of normal hours while other customers prefer to shop for everything they need in a single
store. It is made up of busy people who value their time and are looking for a shop where they
can quickly go in and out and get everything they need.

5. Shopaholic – This group of consumers are extremely fond of shopping. Shopaholics use
shopping as their “drug” or “therapy”. They truly believe that item is a necessity they must
possess. In this case, they would be attracted to fairly purchase a products in Bench.

Nature of Competition

Nature of Competition is the race or rivalry between businesses that are vying for the same
market share. The goal of rivalry is to boost sales and market share in order to increase the
revenue of the company. If you're in the business world, you should be aware of both your
company's strengths and weaknesses as well as those of your rivals. It is very crucial to know
your competitors in every products that you sell in order to utilize marketing strategies. Finding
your competitive advantage is crucial, but you can also stay ahead of the competition if you are
aware of their movements, strong points, weaknesses, and marketing plans. To identify
characteristics and strategies that they can use to their advantage, businesses need to
understand who their rivals are and what they are doing or have tried to do. Finding out what
your competitors are doing before attempting something new yourself is frequently a real benefit
of competitor analysis. There are direct and indirect competitors. The considered direct
competitors in local brands of bench are Penshoppe & Folded and Hung. The company
considers the entrance of foreign labels such as Forever 21, Zara, Zalora, Uniqlo, and Shein.
Among them, Penshoppe is considered as their greatest rival. The indirect competitors are the
online-based clothing shops and retail store-based clothing brands. Although most of them offer
clothing and other cosmetics, they are still of one of the competitors when it comes to target
market. They also target teen and young adults, fashionista, a buyer that can be back because
of satisfaction, and the people who wants to have a convenient shopping who might enjoy their
products. Furthermore is substitute. The consumers have a lot choices on whom brand they
purchase products that can satisfy them. Online clothing can be a substitute because it’s just
you need to place an order to their shop and wait for it to be delivered than going to a physical
store. Nowadays, a lot of consumers wants a product that is easy and convenient for them to
buy. Shopping online allows consumers to browse for products and checking prices between
these online shops. In this way, people can make a better decision to buy what they like after
taking prices, sizes and models into consideration. Buying things on the Internet helps people
save a great deal of time. That is to say, since people nowadays are often so caught up with
work and study, shopping online is a wise choice which doesn't require them to go the stores.
With a click of mouse or tap on their phone, they can buy the things they need and the shippers
will deliver their products to customers as soon as possible. You'll know exactly what you bring
to the table if you know your brand's advantages, weaknesses, and distinctive value proposition.
With this information, you can convince customers of your true value, modify your brand
strategy and communications tactics, and regain market share. Knowing your competition in
business is critical to success.

Pricing Strategy

Price is what bench standout from their competitors and that’s what keeps their competitors in
bay. Since they cater to class B and class C, their prices don’t go overboard; Bench maintains
the affordable price range for the mass. Though they won’t spill how they arrive to the price
mark -ups, they make sure that it’s still light on the pocket. For the quality Bench provides us
and the affordable prices, that makes Bench’s merchandise worth every penny and this is one
possible reason why they are still leading the local market. Pricing strategies refer to the
processes and methodologies businesses use to set prices for their products and services. If
pricing is how much you charge for your products, then product pricing strategy is how you
determine what that amount should be.

1. Cost-plus pricing – Cost-plus pricing is a pricing method where the final selling price is
calculated by adding a markup to the product's initial unit cost. Simply add a certain percentage
to the costs associated with creating your product or offering a service to your clients in order to
calculate your profit margin. The same amount of money is then generated by each unit sold to
pay for your expenses and profit margin. There are a number of benefits to the cost-plus pricing
strategy, these are the following: fast implementation for just about any product of bench, easy
to calculate, predictable profit that always covers production costs, and customers understand
the justification for your selling price. The cost-plus pricing would really work better in Bench
Clothing because it sells physical products where value isn’t derived from ongoing relationships
with their customers.

2. Promotional pricing – It is where the price of a product is kept reduced for a short period to
build customer loyalty and swell sales volume, and then increased later on. The effective "Buy 1
Get 1 Free" offers are another common method of price promotion in the market. Who wouldn't
give in if they got two for the price of one, right? It is a marketing tactic that appeals to a certain
segment of consumers' psyches. Promotional pricing is a strategy to draw customers by offering
low prices up front, followed by high-quality products. Promotional pricing engenders a sense of
urgency, pressuring customers to make a decision now or never. The best product at the lowest
price is what everyone wants, and it achieves this by effectively marketing the product and
closing the deal on the price. For this brand, this pricing strategy would be appreciated because
when you build trust and loyalty to your customer they could possibly purchase again and again.
Getting new customers is another great benefit. When a new product or service is introduced,
some customers are frequently influenced while others are not. A portion of the latter group
abstains because it is too expensive. For those who choose not to purchase, a large, prominent
sale sign is sufficient to catch their attention and help them remember the company. This works
particularly well for new brands that are attempting to establish themselves in the marketplace.
This tactic is relatively less expensive and has already been tested on the market, unlike some
others that could cost a fortune. Therefore, promotional pricing aids in attracting customers to
the buying market.

3. Economy pricing - An economy pricing strategy is similar to a cost-plus pricing strategy. You
take a product with relatively low production costs and set a price for it that provides you with a
small profit. It's a pricing technique used by companies to make commodity and generic goods
appealing. In other words, it gives the impression that customers are getting a good deal. The
best examples of economy pricing in action are store-brand goods and generic medicines. For
bigger, more established businesses, economy pricing offers some intriguing advantages. There
tend to be lower customer acquisition costs (CAC) than other pricing strategies, coupled with
the fact that you can acquire customers faster, making it an attractive option for buyer personas
who are particularly interested in "getting a deal." New entrants may benefit from being able to
enter a market more quickly and cheaply, but doing so comes at the cost of losing pricing
power. Economy pricing is more of a marketing than a pricing strategy.

Competitive Advantage
The competitive strategy or competitive advantage. It is very essential to business success to
have an advantage over the competitors. Target competes in the same industry by appealing to
more fashion-conscious consumers and Bench, as the leading online clothing line and also in
the physical world. Here are the advantages of Bench: 1. Bench line has since expanded to
include stationery, men's fashion accessories, toiletries and an extensive underwear range. All
their franchises were given all the needs in expansion of company and their store by means of
seminars from its lowest personnel up to higher personnel. 2. All the raw materials in the
manufacturing of apparels comes of locally produced markets. Bench offers and became a
game changer by becoming the first local brand to use bamboo fiber in its Envi line. A very
sustainable resource, bamboo is easier to grow and harvest compared to cotton and utilizes
less energy and water. Moreover, the fabric from bamboo is more comfortable and durable. 3.
The brand also introduced Green Wednesdays in which customers are urged to use their own
shopping bags. It also produced a safari collection in support of the preservation of endangered
species in Calauit sanctuary. 4. We will improve and offer a high quality products at affordable
prices that can satisfy consumers. 5. Use a strong set of local and foreign endorsers so that we
can attract more customers that could possibly build trust and loyalty. This means that the
business can outperform its competition in the market and make a higher profit.