The Importance of a Target Group: An Investigation of Oh! by Kopenhagen Fur and its Strategic Choices

Pernille Line Nøhr

Student thesis: Master thesis

Abstract

The market for luxury brands discloses a minimal improvement, where the market for affordable luxury is thriving. Every company must determine whom it wants to target and how to do it in order to be successful. Oh! by Kopenhagen Fur is a Danish accessory brand specialized in fur products and was founded in 2013 by its subsidiary Kopenhagen Fur. Oh! was based on a marketing stunt, as it wanted to show the fashion industry how to incorporate fur innovatively. Oh! by Kopenhagen Fur’s target group are women in the ages of 25 to 45; however, the communication and marketing strategies do not seem to applied efficiently, as observations of its customers points in the direction of a potential misalignment. This thesis provides an analysis of Oh! by Kopenhagen Fur’s current communication and marketing strategies in order to discuss how it can optimize its strategies with object of target its target group more efficiently. This thesis employs an embedded single-case design, as it investigates the strategic choices of Oh! by Kopenhagen Fur with a thorough investigation. The thesis embodies several qualitative interviews, observations and qualitative questionnaires, which provides this thesis with a methodological triangulation. The qualitative interviews are conducted with a semi-structured interview technique. The interview with Oh! by Kopenhagen Fur was conducted in order to gain insight and knowledge of the organization. Furthermore, semi-structured interviews have been conducted with two multi brand stores Gossip and Bahne, as they are retailers of Oh! by Kopenhagen Fur. Finally, a semi-structured interview with a competitor has been carried out. Additionally, observations have been conducted in same retail stores in order to observe and obtain knowledge from actual consumers and their ongoing behavior. In addition, 7 qualitative questionnaires with customers from Gossip and Bahne have been applied as a supplement to the observations, inasmuch as it provides the thesis with information from relevant respondents. Due to the methodological approach, a positivistic approach combined with an approach of social constructivism is applied. The collection of data has been analyzed and discussed by using several theories. The analysis and discussion are divided into two parts, where the first part analyzes and discusses the internal situation of Oh! by Kopenhagen Fur and applies the VCI Alignment Model and a Marketing Mix in terms of the 4Ps and the 4Cs. The second part analyzes and discusses the external situation and employs Porter’s Five 1 Forces. Additionally, a SWOT framework is utilized in order to summarize the findings and to ensure coherence between the two parts. The findings in the first part concluded a clear mismatch between Oh! by Kopenhagen Fur’s strategic vision and its corporate image, as the observations demonstrated its customers have an average age of 22 year. In addition, the qualitative interviews and questionnaires proved that stakeholders perceive and hold a different image of Oh! by Kopenhagen Fur than it does itself. The second part concluded the a market with high entry barriers, many competitors within bags and accessories, and a market attained with brand conscious consumers; additionally, a possibility to focus on market for affordable luxury as well as utilize a market with rather few fur brands like Oh! by Kopenhagen Fur. In order for Oh! by Kopenhagen Fur to optimize its strategies, it has to define its target group and their wants and needs in order to target them efficiently. It has to determine what market it aims for, as it affects its corporate image, price as well as the choice of target group just to mention a few. Oh! by Kopenhagen fur must develop a strategy that are suitable for its target group and implement communication and marketing tools in order to target its target group successfully.

EducationsMaster of Business, Language and Culture, Intercultural Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2017
Number of pages142
SupervisorsHenrik Køhler Simonsen