The Men’s Wearhouse Analysis
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In the year 1974, the company, ‘The Men’s Wearhouse’ became incorporated. Its market is found in Canada and the United states. It is involved in renting out tuxedos and provision of men’s suits. To date, the number of retail stores has reached 1192 whereby, in Canada, there are 117 stores and in America the stores are 1075. In the two countries, the company operates under different brand names such as K&G, Men’s Wearhouse and Tux, as well as Men’s Wearhouse. Respectively there are 102, 388 and 585 stores in total. Moore clothing is the name given to the stores in the Canadian market (The Bloomberg BusinessWeek, 2004). The stores also deal in services such as laundry operations and dry cleaning. According to information obtained from social media such as Tweeter and Facebook, men are happy with the products, which the company provides. It has opened an account on Facebook whereby, its clients post their comments on a regular basis. This is a strategy, which will increase the market share of the company (New York Times, 2011).
According to recent information obtained from the Stock Exchange in New York, the sales went as high as past sales to approximately 22%. This means that in its second quarter of operations, tuxedos, which are low cost, were rented out by men. In turn, the revenue increased to 655.5 million dollars, which was higher than that of the previous year. Also the net earnings were higher as they had reached a total amount of 57.08 million dollars (New York Times, 2011). The strategy they chose seemed to work as they were earning a lot of money. For example, they bought Dimensions &Alexandra, which are clothing giant in the United Kingdom. This means that there was a 11.8% sales increase incurred by the company.
The United States has been affected by high rates of unemployment. This has in turn affected business greatly and in turn, spending by consumers has reduced drastically. Fortunately, ‘The Men’s Wearhouse’ has been able to make the position on cash to expand. Also, a lot is being done to ensure that money is not wasted, but is instead, being invested. Also, the strategy it has put in place ensures that the business efficiencies are achieved; productivity is increased as well as lowering its expenses (Plumb, 2011). Also, ‘The Men’s Wearhouse’ has been involved in marketing programs through the internet and television, which is part of its marketing strategy. The company focuses on being a retailer that is low priced despite being in the market for almost four decades. The company’s value preposition is that its customers are to benefit from quality products as well as having affordable products. ’The Men’s Warehouse’ has made sure that its value preposition is redefined effectively. This has been taking place in all the stores it has in North America. The Value preposition is meant to ensure that margins are improved as well the value being acceptable. The company seeks to ensure that its customers benefit from the discounts, which are offered and are of high value. The latter ensures that the brand community is improved in all its stores.
The business unit at ‘The Men’s Wearhouse’ is ensuring that it makes effective use of the latest technology in its marketing activities. To make sure that customer experience is enhanced, the company has confirmed that its functionality increases. The visitors to the site are over one million and this is on a monthly basis. The result is that the company has benefited from increased revenue and rates of conversion. The use of catalog is another of it competencies and this has increased the customer base. This is because the brand has gained popularity and this becoming stronger. Its competencies are sure ways of increasing the market share of the company (Cordella, 2007). Since the company has proven successful, it should add more items for men to its line. This marketing strategy should ensure that ‘The Men’s Wearhouse” becomes competitive thus in turn obtains an edge as compared to others. The marketing mix ensures that the company advertises its products well. They include, place, product, promotion and product.
A lot of money is being spent on marketing programs, which is a valuable investment. For example, the company has a site used for the purposes of e-commerce. A creative agency was set up for the K&G brand. This is meant to ensure that it remains competitive as there are many competitors in this business. There is a need to ensure to customers are aware of the companies promotional message and its brand message (Nash, 2000). This is meant to ensure that its value proposition is maintained .Also; the company seeks to ensure that quality is maintained in all its stores. This strategy is completely sustainable as people buy products, which they know about. This is because customers always want to be associated with brands they recognize and that benefit them. Effective marketing, have proven to succeed in many situations, which involve businesses.
After a conducting The Men’s Wearhouse’ SWOT analysis there are certain matters, which need to be known. In terms of Strengths, it provides the best products such as clothing for males. The weakness is that it spends a lot of money in promotional activities. It should find ways to promote its products without suing a lot of money. It should seek to expand to other continents such as Europe and South America, in order to expand the customer base. The threat is faces is that is should seek to find ways of making its products affordable due to increase in prices of gas. The latter affects the production of clothing, as well as other products, by increasing production expenses.
The corporate culture at The Men’s Warehouse’ is centered on the employees. The company ensures that all its employees are treated well. This means that apart from clothes being its core competency, employees are also taken care off. The company believes that employees are responsible for the success of the business. It creates an environment, which is ensures that employees flourish, prosper and grow. The values, which are followed in the company, are responsible for fostering creativity. In order for people to work for the benefit of a company they must be motivated to do so. The employees must become people who are self-actualized. This means that on a regular basis, the management should come up with effective strategies, which enhance the corporate culture (New York Times, 2011). A corporate culture ensures that ‘The Men’s Wearhouse’ is a brand that people want to associate with, because of its success. Also, since the employees are treated well, it reflects positively on the customers. ‘The Men’s Wearhouse’ is sure to expand in the coming years. This is because it is using effective marketing strategies, which further ensures that it becomes successful, despite there being competition.
References
Cordella, Antonio. (2007). E-government: towards the e –bureaucratic form. Journal of Information Technology, 22, 265-274.
Nash, Edward. (2000). Direct Marketing: Strategy, Planning, Execution .New York: McGraw-Hill.
New York Times. (2011). Men’s Wearhouse Inc. Retrieved from http://topics.nytimes.com/topics/news/business/companies/mens-wearhouse-inc/index.html
Plumb, Tierney. (2011). The Men’s Wearhouse reports Q2 (Jul) earnings. The Motley Fool. Retrieved from http://www.fool.com/investing/general/2011/09/08/sales-soar-at-mens-wearhouse.aspx.
The Bloomberg BusinessWeek. (2004). Spiffing up Men’s Wearhouse. Retrieved from http://www.businessweek.com/magazine/content/04_44/b3906112.htm
