Impact of Promotional Strategies on Consumer Buying Behaviors : A case of Hollister Co.

NOWSHAD MOURIN SHAWON L0044SZSZ1010 Page 0

Impact of Promotional Strategies on Consumer Buying Behavior: A case study of

Hollister Co.

SUBMITTED BY:

NOWSHAD MOURIN SHAWON LSC ID: L0044SZSZ1010 UWIC ID: ST20029903

SUPERVISOR

ELLIE SEMSAR

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Declaration: This dissertation is submitted in part fulfilment of the BA (Business and Management Studies). I confirmed that, this dissertation is a product of my own work and is not the result of anything done in collaboration. I agree that this dissertation may be available for referencing and photocopying, at the discretion of university.

Signature........................................

Name: NOWSHAD MOURIN SHAWON.

Date: 14/09/2012

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Acknowledgements: I would like to take opportunity to thank my supervisor Ellie Semsar for her kind supervision, guideline and help during this dissertation. I must say thanks to my parents, friends and family and my classmates, they all were very kind to me during my study. I am very grateful to managers of Hollister (Stratford city) for giving me permission to carry out my research on Hollister. I would also like to thank all survey participants for giving time to fill the survey.

NOWSHAD MOURIN SHAWON STUDENT ID: L0044SZSZ1010 UWIC ID: ST20029903

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Abstract: Promotion is one of the important marketing tools in today’s business. Sometimes a business’s success can be come through a effective promotional strategy. In fashion & clothing business, importance of an effective promotional strategy is tremendous. This research has been done on Hollister, an up going brand. Hollister is different from other for its promotional strategies. In store model and other promotional strategy made Hollister different from its competitors. Hollister is not doing promotion in traditional way but still number of customer is increasing in every year. In this research, the research tried to find out the impact of promotional strategy on consumer buying behaviour, using case of Hollister. In the first chapter of this research, the researcher illustrated the aim and objective of the research, significant of the study and background of the company. As the topic includes two parts: promotional strategy and consumer buying behaviour, the researcher has reviewed the related theory and model on promotional strategy and consumer buying behaviour in chapter two. In addition, to make clear sense to the reader, the researcher discussed literature about business, strategy and marketing briefly as promotion is the part of business strategy and marketing. In chapter three, under the title research methodology, the research method, approach, strategy and relevant information have been discussed to make clear to the reader, how the research has been done. To gather information for this research, the researcher gathered some secondary data from difference article and annual report. The primary data has been gathered through interview and survey. The aim of the interview was to know about Hollister’s promotional strategy and the aim of the survey was to know the consumer buying behaviour and perception about Hollister. The both kind of data were analyzed and integrated at the end of the chapter four. In chapter five, research judgment has been done through discussing applicability of research data to the aim and objectives of the research. This research concludes with some recommendations for Hollister to improve its promotional strategies that have been given by the researcher based on analyzed data.

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Table of Contents CHAPTER ONE: INTRODUCTION ..................................................................................................... 1

1.1 Background Of The Study: ........................................................................................................... 1

1.2 Background Of The Company: ..................................................................................................... 2

1.2.1: History of Brand Name: ........................................................................................................ 2

1.2.2: Opening and International Expansion: .................................................................................. 2

1.3 Rational & Significance: ............................................................................................................... 3

1.4 Research Aims and Objectives: .................................................................................................... 4

1.5 Research Questions: ...................................................................................................................... 4

1.6 Structure Of The Study: ................................................................................................................ 5

CHAPTER TWO: LITERATURE REVIEW ......................................................................................... 6

2.1 Introduction: .................................................................................................................................. 6

2.2 Business and Strategy: .................................................................................................................. 6

2.2.1: Business: ............................................................................................................................... 6

2.2.2: Business Strategy: ................................................................................................................. 6

2.2.3: Importance of Strategy In Business: ..................................................................................... 7

2.3 Marketing Strategy & Marketing Mix: ......................................................................................... 7

2.3.1: Marketing: ............................................................................................................................. 7

2.3.2: Marketing Strategy: .............................................................................................................. 7

2.3.3: Marketing Mix: ..................................................................................................................... 8

2.4 Promotion and Promotional Strategy: ........................................................................................... 8

2.4.1: Definitions Of Promotion: .................................................................................................... 8

2.4.2: Promotional Activities: ......................................................................................................... 9

2.4.3: Types Of Promotion:............................................................................................................. 9

2.4.4: Promotional Mix: .................................................................................................................. 9

2.4.5: Promotional Strategy: ......................................................................................................... 10

2.4.6: Importance of Promotional Strategy: .................................................................................. 11

2.5 Consumer Buying Behaviour: ..................................................................................................... 12

2.5.1: Concept Of Consumer Buying Behaviours: ........................................................................ 12

2.5.2: Consumer Buying Behaviour Process: ............................................................................... 13

2.5.3: Factors Influencing Consumer Behaviour: ......................................................................... 15

2.5.4: Models of Consumer buying behaviours: ........................................................................... 15

CHAPTER THREE: RESEARCH MATHODOLOGY ....................................................................... 18

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3.1 Introduction: ................................................................................................................................ 18

3.2 Research Paradigm: .................................................................................................................... 18

3.3 Research Philosophy: .................................................................................................................. 19

3.4 Research Approach: .................................................................................................................... 19

3.5 Research Strategy (Case Study): ................................................................................................. 19

3.6 Research Method: ....................................................................................................................... 20

3.7 Time Horizon: ............................................................................................................................. 21

3.8 Data Collection and Data Analysis: ............................................................................................ 22

3.9 Ethical Consideration: ................................................................................................................. 22

3.10 Strength Of The Methodology: ................................................................................................. 22

3.11 Weakness Of The Methodology: .............................................................................................. 23

CHAPTER FOUR: DATA FINDING AND ANALYSIS .................................................................... 24

4.1 Introduction: ................................................................................................................................ 24

4.2 Secondary data: ........................................................................................................................... 24

4.2.1: Promotional Strategies of Hollister by different authors: ................................................... 24

4.2.2: Information From A&F and Hollister’s Annual report: ...................................................... 25

4.2.3: SWOT analysis by Jnhall (2010) & mba skool: ................................................................. 26

4.2.4: Finding from Secondary Data: ............................................................................................ 27

4.3 Primary Data: .............................................................................................................................. 27

4.3.1: Finding from the survey: ..................................................................................................... 27

4.3.2: Finding From The Interview: .............................................................................................. 38

4.4 Data Analysis & Discussion: ...................................................................................................... 41

4.4.1: Analysis of Interviews: ....................................................................................................... 41

4.4.2 Analysis Of Survey: ............................................................................................................. 44

4.4.3: Integration of Interviews and Questionnaires: .................................................................... 45

CHAPTER FIVE: CONCLUSION AND RECOMMENDATION. ..................................................... 47

5.1 Introduction: ................................................................................................................................ 47

5.2. Evaluation of Finding: ................................................................................................................ 47

5.3 Applicability of research data to the aim and objectives of this study: ...................................... 47

5.4 Recommendations For Hollister: ................................................................................................ 48

5.5 Limitation of the study: ............................................................................................................... 49

5.6 Recommendations for future researcher: .................................................................................. 49

5.7 Summary: .................................................................................................................................... 50

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References: ........................................................................................................................................... 51

Appendix: .............................................................................................................................................. 55

Table of Figures: Figure 1: Gender of customers. ............................................................................................................ 28 Figure 2: Age criteria. ............................................................................................................................ 29 Figure 3: How customers know about Hollister .................................................................................... 30 Figure 4: Frequency of shopping ........................................................................................................... 30 Figure 5: Reasons of shopping .............................................................................................................. 31 Figure 6: How customers like store decoration .................................................................................... 32 Figure 7: Effectiveness of models ......................................................................................................... 32 Figure 8: Customer's thinking about advertisement ............................................................................ 33 Figure 9: Event sponsoring .................................................................................................................... 33 Figure 10: How customers like the sales promotion ............................................................................ 34 Figure 11: Influences of promotion on consumer ................................................................................ 34 Figure 12: How customer differentiate Hollister .................................................................................. 35 Figure 13: Factors that influence customers to buy ............................................................................. 36 Figure 14: Effectiveness of sales promotion ......................................................................................... 36 Figure 15: Effectiveness of clearance ................................................................................................... 37 Figure 16: Customers Thinking About promotional strategies ............................................................. 37 Figure 17: Rating by customers ............................................................................................................. 38


CHAPTER ONE: INTRODUCTION

The aim of this chapter is to introduce the reader with the research topic and the business organization, where the research had been done. This Background of this study had been shown at the beginning of this chapter with a brief introduction of the organization includes history of the organization and the CEO afterwards, rational & significant of the study, aim and objective of the research, research questions and the structure of this research had been shown in this chapter.

1.1 Background Of The Study: The purpose of this research was to investigate the impact of promotional strategy on consumer buying behaviour using Hollister as a case study. Promotional strategy is the most vital matter for the success of a business organization. Promotion is one of the crucial and sensitive parts of marketing mix. Perfect promotional strategies can lead a business organization to its goal. It makes easy for an organization to be established and profitable in the market. A strong promotional strategy process in place facilitates to make sure that, the marketing performances stay aligned with organizational goals and maximize the return from the marketing activities.

Adopting a good and effective promotional strategy is very important for any business. Without a best promotional strategy, a business will not be able to get the ideal customers for its services and goods. The main theme of a promotional strategy should be to introduce the benefits of products and how they can meet consumer’s needs. It can help an organization to develop a profitable and long-term relation with customers. This is very essential to have a perfect and flexible promotional strategy within a business organization that can react to changes in customer perception. It helps to identify an entire new market that can be successfully targeted.

Clothing industry is one of the most competitive industries in the market. There are many facts related with clothing industry to be profitable in the industry for a business organization. Obviously, consumer buying behaviour is most important among them. Promotional strategy affects consumer buying behaviour most. A promotional strategy can create a good impression of consumers on the brand or it can also create bad thinking on the brand.

Hollister is one of the possible giant in the clothing industry. Hollister is an American life style company and quite new in the international market. The strategies for promotion taken by Hollister are bit difference than others. They are not going through the traditional way of promotion. Hollister is introducing some new way of promotional activities but it is still


controversial, is the promotional strategy taken by Hollister effective or not? There is also another important question, the impact of Hollister’s promotional strategy on consumer buying behaviours. This research focuses on promotional strategy of Hollister and its impact on consumer buying behaviour.

1.2 Background Of The Company: The importance of a strong promotional strategy in clothing industry is very momentous. Hollister Co is an up going brand in clothing industry. Hollister is an American lifestyle brand a division of Abercrombie & Fitch. Sometimes, it’s called HCo, Hollister, Hollister Co. etc. The aim of this brand is to attract customer aged fourteen to nineteen. Hollister sell their product comparatively in lower price than its parent brand Abercrombie & Fitch.

1.2.1: History of Brand Name:

Hollister’s connectional character called John M. Hollister to give the feeling and meaning of brand image. John M Hollister was an adventurous youth; he exhausted his early times doing sports in the waters of Maine. in 1915 at the age of 21, John M Hollister graduated from Yale University. John M Hollister boarded a sequence of steamboats, He never wanted the high life that established by his father in New York, after that he concentrate to the Dutch East Indies and bought a rubber plantation in the mean time he fell in love with plantation seller Gregory Van Gilder’s daughter Meta. After that, John M Hollister sold his land and purchased a 50-foot schooner. With that schooner Hollister and Meta spent two years seafaring the South Pacific Ocean. John M Hollister and Meta return to Los Angeles in 1919, and married in the same year. Their son John M. Hollister, Jr. was born in 1920. After discovering California and himself with his love for the South Pacific, in 1922 in Laguna Beach John M Hollister Sr. established Hollister Co .In 1957 John M Hollister took over the business (BBC news, 2009), (Famous logos, n.d.), (Hollister co, 2010).

1.2.2: Opening and International Expansion: Hollister launched in July 2000 at Easton town centre, Columbus in Ohio (Bizjournals, 2000). This is a division of Abercrombie & Fitch. Hollister’s headquarter situated in New Albany, Ohio. Hollister’s theme is Socal, colour scheme sepia. Hollister business with casual wear for high school aged boys and girls. Seagull is the logo for Hollister. Hollister has over 575 store all over the world, including, USA, UK, Canada, Italy, Germany, Spain, Ireland, Sweden, Hong Kong, France, Belgium and Austria (Reuters, 2012).


Hollister’s brand is more successful than its parent brand Abercrombie & Fitch. They noticed that Hollister surpassed Abercrombie & Fitch brand. Good quality materials and construction are mainly focussed in the production of Hollister’s goods and clothing.

The interesting thing about Hollister is- most aggressive international expansion in recent years. Hollister has 77 international stores. It opened 39 international stores in 2011. In average $10 million annual revenue per store comes from outside of North America. Hollister is planning to open 40 stores in 2012 and 30-40 in every up coming year. Hollister has twelve stores in Canada. Twenty six in UK, eleven stores in Germany, in Italy five stores, eight in Spain, four in France, three in Australia, two in Belgium, two in china, one in Hong Kong and one store in Ireland (Montgomery, 2012).

1.3 Rational & Significance: Marketing is the most interesting, creative and challenging side of today’s business.

Promotion is one of the important tools of marketing mix. A perfect and effective

promotional strategy can lead an organization to its success and fulfil the requirement of

target market. Promotional strategy can be varying by places. It is very important for every

business organization, particularly multinational company. Promotional strategy depends on

culture and people. Customer buying behaviour is most significantly related to promotional

strategy. Building a good customer relationship is one of the important aims of promotional

strategy.

Modern business activities are all about building advantageous customer relationship. It

commence with knowing consumer’s needs and wants, choosing which target market can the

business supply the best, and developing a convincing value plan by which the business

attract, remain and expand target consumer. If the business does these things satisfactory,

from launching to the end, it will obtain the plunder in term of share, revenue and equity


(Armstrong et al, 2009). It is not big deal, how the product and goods developed, distributed

or priced, the company cannot survive without effective promotion (Lamb et al, 2009).

The author of this study is personally fascinated in this topic as the conception of promotional

strategy is a very important in the marketing management literature and now a day’s many

business organisations are very concern about the promotional strategy. A perfect

promotional strategy can make a business profitable. Hollister Co is a possibly successful

business in London, if they can take a perfect promotional strategy which can be perfectly

matched in market in London.

1.4 Research Aims and Objectives: The aim of this research is to investigate the impact of promotional strategies on consumer buying behaviour: A case of Hollister.

The aim of this research will be achieved using following objectives:

• To review existing models and theories related to promotion and consumer buying behaviour.

• To identify Hollister’s promotional strategies and how they made Hollister different from others.

• To evaluate the effectiveness of promotional strategies used by Hollister.

• To find out the real scenario of Hollister’s consumer buying behaviour.

• To recommended the Hollister, ways to improve their promotional strategies especially in London.

1.5 Research Questions: The following questions will be answered in this research through the study on Hollister:

• What promotional strategies are currently taken by Hollister?

• How effective are promotional strategies that taken by Hollister?

• What is the customer perception about Hollister’s promotion?

• What promotional strategies or what improvement in current strategies are needed for Hollister?


1.6 Structure Of The Study: Chapter One (Introduction):

The research topic and in general idea of study are explained in chapter 1. In this chapter the researcher focused on study background, company background, rational & significance, aims and objectives, research questions and brief methodology of the study.

Chapter Two (Literature review):

In this chapter, subject related all previous articles, thesis, papers and reports that found during data collection are analyzed.

Chapter Three (Research Methodology):

The approach of undertaking this study is analyzed in this chapter. The factors such as making process, validity, reliability are also discussed.

Chapter Four (Findings and analysis):

The author of this study found many statistic, issues and points through a deep study. In this chapter, these matters are analyzed using difference methods and practices.

Chapter Five (Conclusion and recommendation): The important aspects, findings, quite a few statistics and recommendation for the company are given in this chapter.


CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction: The aim of this chapter is to review and study the existing literature and theory that related to this study. The purpose is to assemble theoretical literature to make strong study together with data that had been collected in this study. This chapter begins with the concept business and strategy, marketing mix as promotion is a part of marketing mix, concept of promotion and promotional strategy, importance of promotional strategies, consumer buying behaviours and effect of promotional strategies on consumer buying behaviour as all of these topics are related with this study aim.

2.2 Business and Strategy:

2.2.1: Business: A business is an organization, engaged with the trade of goods or service or both to consumers (O'Sullivan & sheffrin 2003).

Business is the main in industrialist economies, where they are mainly owned privately and work to make profit to maximize the capital of their owners. Business organization cal also be not-for-profit, mainly seen as state-owned. A business, which is run by multiple individuals may be called as a company, however this term also has a more specific meaning (O'Sullivan & sheffrin 2003).

Jennings (2012) suggests that- ‘Business is an enterprising or organizational body, which affianced in mercantile, manufacturing or specialized activities. A business organization can be a for-profit purpose, such as a traded company, on the other hand, a non-profit business organization work for the people of a state, such as farming cooperative.’

2.2.2: Business Strategy: Aaker (2005, p.4) says that- ‘‘A business is generally as organizational unit that has a distinct business strategy and a manager with sales and profit responsibility.’’

According to Kourdi (2009) Business strategy is the plans, choice and decision used to guide a company to greater profitable and success.

Whittington (2001) suggests four approaches of a strategy which can be divided into two dimensions, they are: process by which strategy should be taken and the outcome of strategy.

Aaker (2005) also suggests the four approach of a business strategy. The four approaches of a business strategy are: product market investment strategy, value proposition, assets & competencies and functional area strategy & programme.

Strategy in the business is ongoing process, where a entrepreneur should analyze vision and external environment of the organization and business internal environment. After analyzing


them, entrepreneur should take one or more strategy to create value for customer, stakeholders and specially shareholders (Ireland et al, 2012).

2.2.3: Importance of Strategy In Business: The business world is on edge of an intellectual revaluation. The aspects of strategy formulation, such as, planning and decision making had been transformed to science from an art. In open developing business, this transformation made a brake through with strategy and solution. It helps this kind of business to overcome the challenges of business world (Ulwick, 1999).

Importance of strategy in business is tremendous. Strategy is the only way to get competitive advantages in competitive market. Because of only lack business strategy, in 1970, most of the company in America lost their competitive advantages (Nilsson & Rapp, 2005).

2.3 Marketing Strategy & Marketing Mix:

2.3.1: Marketing: Kumar (2004, p.1) states that ‘‘Market always changes faster than marketing’’

According to Drucker (2012) The business enterprise has two and only two basic function: marketing and innovation. Marketing and innovation produce results’ all the rest are cost.

Marketing is the process by which business create values for customers and create strong relationship with customers, in business to consumer market. In business to business market, marketing creates solution, value and makes long term or short term relationship to make profit for both sides. Marketing is an integrated process by which a business organization creates values for themselves and customer and make strong customer relationship. The marketing in business is used to identify, satisfy and keep the customers (Kotler et al, 2008).

2.3.2: Marketing Strategy: Ferrell et al (2002, p.1) State that- ‘‘every organization requires effective planning and a marketing strategy focused on achieving its goals and objectives and satisfying customers needs and wants.’’

Every business expansion depends on its marketing strategy, it involves selecting target market and analyzes them, maintaining proper marketing mix (Products, distribution, promotion and price) with the aim of satisfying the target market. Developing a marketing strategy is very arguable part of business; marketing strategy involves target market and marketing mix. Moreover, market can be classified by two categories: Sellers market and buyers market. It means, who hold the power of products pricing (Ferrell et al, 2002).


Proctor (2003, p.17) indicates that marketing strategy includes applying researched plans which should involve a series of effective and examined steps and all of them should be used which is provided by marketing research.

2.3.3: Marketing Mix: Marketing mix is a very essential tool for business. The concept of marketing mix is important to differentiate a product from business competitors and marketing mix mainly consists of four tools, such as product, price, promotion and place (Tehrani , 2009).

McDaniel & Gates (1998) indicated that - Establishing the marketing conception is the initial stage in building a market related business organization. Within the marketing unit, a marketing mix, based on the marketing model must be formed. The mix is the exceptionally combination of product, place, price and promotion. Marketing mix should be intended to go for specific group of customers. Each element inside the marketing can be controlled by marketing managers. A strategy for each part must be uniquely created and combined with other essentials by the marketing managers to get a best possible mix. One thing has to keep in mind that, within marketing mix, a weakest element can make other strong element affected.

2.4 Promotion and Promotional Strategy: Promotion is one of the important sides in marketing mix. Fundamentally it means communication between the business organization and its customer. In the marketing mix, a manager needs to develop the product and price. After developing these 2p’s of marketing mix, the manager needs to develop an appropriate strategy for promoting the product. Promotional strategy is the fourth key ingredient of marketing mix. This strategy concentrates on making product flow all the way through marketing channel to its target market. Promotional activities actually a exercise of communication. Promotion proposes to convince, notify and influence people through the communication. (Koekemoer, 2004).

2.4.1: Definitions Of Promotion: Alderson & Green (1964, p.270) stated that- ‘‘Promotion is any kind of marketing attempt is to notify or convince actual or potential customer about the merits of a product or service for the purpose of introducing a consumer either to carry on or start purchasing the firms product of services at the similar price.’’

Brink and Kelly (1963) Suggested that- Promotion is harmonization of all sellers initiated efforts to setup channel of information and influence to make possible the sale or a product, service or the acceptance of an idea.


2.4.2: Promotional Activities: Lindsey (2003), Schultz (1998) and Kumar & Sharma (1998) talked about promotional activities: All of the promotional activities are concerned with consumer demands which may be achieved by three points, they are:

1) Informing consumers about existing or new products, distinguishing peoples want and letting them know about satisfying characteristics and inform products ability.

2) Reminding the products consumer about the product and its role in consumption periodically.

3) Persuading the products buyers and convince them to buy the products.

2.4.3: Types Of Promotion: Kumar & Sharma (1998, p.360) suggested that there are three types of promotion in business. They are: Informative promotion, persuasive promotion and reminder promotion. Informative promotion is very important for an organization to promote the new products. This type of promotion deals with knowledge management. Secondly, Persuasive promotion deals with, influencing the customer to buy the product. Finally, reminder promotion is to remind the customers about the product and influence them to be with the brand.

On the other hand, McCalley (1996, p.188) Showed four types of promotion:

1) Price promotion, This is also known as sales promotion. The aim of this kind of promotion is to offer products to the consumer with reduce price.

2) Bonus Offer, some types of bonus that different than direct payment of money. 3) Sweepstakes programme, Such as- free trips, cloths, or other things without qualifying

the purchase of products. 4) Term of sales, it includes, extended term of payment and cash discount.

2.4.4: Promotional Mix: Promotional mix deals with harmonization with sales power activities, the advertisement and other promotional efforts, which may contains branding, packaging, direct marketing, purchase exhibition, finest and holding trade shows and exhibition, use of sample gift. Consequently promotion is broad term, together with personal selling, advertising, sales promotion and other promotional tools (Kumar & Sharma, 1998).

Promotional mix is used to know and explain the promotional activities that undertaken by a particular organization. Promotion is in central part if we consider the marketing 4p’s. The promotional mix one of the 4Ps that become recognized as the straight method to express the way a business organisation promotes their products and services (Hughes & Fill, 2007).

The promotional mix structure consist some promotional efforts in five different types: advertising, direct marketing, sales promotion, personal selling, and public relations (Czaplewski et al, 2003).


Promotional mix is the combination of different tools that used in the market. These include personal selling, sales promotion, direct marketing, advertising and publicity (Crane, 1993).

• Sales Promotion: Promotions have major effects on growing sales level. The promotions are linked with purchase hastening, in terms of boosting in purchase amount and reduce time between purchases. In addition, promotions are connected with brand-switching, and that households which be inclined to be exaggerated by promotions were associated with minor levels of brand loyalty (Gupta, 1988).

• Personal Selling: The face to face communication between buyer and seller is called personal selling. To use this tool, sellers need to use good technique to know the needs of customers (Crane, 1993).

• Advertising: Advertising is an interpersonal presentation of some ideas which are used for promotional purpose and help with an identified sponsor. The main purpose of the advertisement is to communicate with customers through an identified sponsor and the advertisement should be purely visible, such as newspaper, TV commercial etc (Macrury, 2009).

• Direct Marketing: Direct marketing is a kind of advertising that permits business organization and nonprofits organization to communicate directly to the clients, with advertising system such as messaging in mobile, sending product information on email, websites, outdoor advertising and promotional letters (Makoto, 2009).

• Public Relation: Kotler and keller (2008) indicate that- ‘‘Public relation can be defined as a body that serves the department of marketing.” (kotler and keller, 2008, p. 594). Public relation could be defined as a program of marketing that supports purchase and customers contentment through believable communication of imitation and information (Harris, 1991).

2.4.5: Promotional Strategy: A promotional strategy is an incorporated programme of promotion mix components- (Advertising, sales promotion, direct sale, personal selling etc) intended to present an organization and its products to its customer to communicate need-satisfying types of product; to create probable sales; and as a result to add long lasting profit performance. (Strydom, 2004).

Promotional planning or strategy is the planned function of marketing possessions to accomplish the promotional objectives. The planning characteristic of the campaign is processes that start with the manager determining a organized way of categorizing a range of choice, selecting those, which are essential and then producing a agenda with costing to make sure that the stated objectives are attained (Gelder & Woodcock, 2003).


2.4.6: Importance of Promotional Strategy: A number of factors are responsible to boost consequence of promotional efforts for an organization. First factor among those is customer’s wide variety of choice. Promotion is essential to persuade these customers to transform their buying habit. Another factor is the rising gap of physical and emotional distance, this means manufacturer use association and channel to provide products information to the customer, and this must be taken in to relation to make a communication strategy. Next factor is the growing competition in the industry. Lastly, the most active factor is technological matters. All of these factors should be accounted to build an proper promotional strategy. (Strydom, 2004)

According to strydom (2004) the factors which increase promotional efforts are:

Factors leading to increase promotional efforts

Promotional activities at intermediary level turn into more noteworthy if the product is extra complex, technological or expensive (Zeithaml & Bitner 2003).

While, a business that uses a intermediary frequently cannot handle the ultimate promotions at the intermediary stage, as the intermediary may concern only about its own interests and use a promotional strategy contradictory with the business’s purposes. Because, organizations and intermediaries are frequently hold altered goals and different views of channel performance. (Zeithaml & Bitner, 2003)

Business organizations that sell tremendously demanded products or services regularly increase the authority to influence intermediaries’ conclusion. Therefore, the level of product

Greater economic risk for marketers

Growth of Promotion

Higher requirement to uphold market share

Superior need to convince customers

who have established product allegiance

Customer increased selectivity

Increased competition within industry

Wider division between customer and marketers


charisma to customers may sway intermediaries’ conclusion to participate in the organization’s promotional program (Murry and Heide, 1998)

2.5 Consumer Buying Behaviour:

2.5.1: Concept Of Consumer Buying Behaviours: Armstrong et al (2009, p.148) suggest that’ Consumer buying behaviour refers to the buying behaviours of final consumers-individuals and household who buy goods and services for personal consumption.’

Consumer buying behaviour can be described as the study of persons, groups or different organisations and their guide of selecting, using, processing, disposing and securing of products, services, ideas or experiences of a particular business organization (Ville, 2012).

According to Peterson (1995) the consumers are constantly showing the moving behaviour while they do shopping but there are a number of customers, who are extremely strict to their choice and loyal to the business organization.

These are most frequently experiential that, in fashion industry the exchange cost is small. Even though the moving of customers show pathetic relationship with the business organisations. That might be the reason, why customer satisfaction is declining (Reinartz and Kumar, 2000). For this reason, the business organizations are constantly offerings package of selections to be loyal with them. Moreover, when they change their dealer, they don’t need any cost (Sheth and Parvatiyar, 1995).

Rust and Zahorik (1993) stated that- ‘‘customers maintenance depends on customer pleasure

and satisfaction and some other drivers.’’

Consumer buying behaviour has been changed dramatically in the last few decades,

especially in the retail and fashion sectors and the main reason is increasing number of

competitors, which is making impact of customers moving ration (Reinartz and Kumar, 2000)

Actually consumer buying behaviours is the system of the individuals or groups and it covers

lots of field in marketing. Customer satisfaction and loyalty also affect consumer buying

behaviour. Moreover, understanding consumer buying behaviour is very important in

business because it is a important marketing concept to make customer happy and loyal.

A business organization should better understand their customer and their needs and make

customers believe that their products and services are better than their competitors. The

responses from customer are the result of company’s marketing strategies whether it is

successful or not. However, a company can be successful in the market if they can use the


information and knowledge from the customer properly. With using of the information a

business organization can make positioning themselves in the market and find the strength

and weakness compare with its competitors (Solomon, 2004).

According to Berry (1969) - there are a number of consequences which are depending on

consumer behaviour correlated with the stores. To boost the stores images rewarding strategy

is very imperative which also shopper loyalty. On the other hand, the difficult consequences

make the critical brand image.

2.5.2: Consumer Buying Behaviour Process: Every business needs to be successful in its sector to make profit. Customer value is important to be successful for a business organization. To offer a great customer value, business organization needs to satisfy its customer’s needs. If organization has a good understanding of customer buying behaviours, they will be capable to offer a great value to the customers. This is the main reason, how some companies make differentiate themselves from others (Ville, 2012). Ville(2012) shows the steps of consumer buying process-

1. The first step in this process is consumer identification of needs for a specific service or product.

2. In the second step, Consumers look for related information to make a perfect decision on how to make satisfy them. Such as what product or what kind services they want.

3. After assessment of this product or service related information, the consumers will buy the product or service on which they are determined

4. At last, consumer will try to evaluate the quality and performances of product and service to know whether it was able to satisfy their needs or not. In this stage, consumer may select that product or service as a permanent option or they can avoid the product or service if they are not satisfied.


Consumer Buying Process (Ville, 2012)

Understanding consumer buyer behaviour needs more than just investigating buying process. Consumption is a very important part in this case. It continues after buying process. The value of product and service can be justified only after consumption of the products and services. In some case, this process takes long as utility of some product and services can be realize at once and decision of customer to buy this kind of products and services come through a long calculation for future satisfaction. The managers, who really understand the consumer needs, can make a good products value to the customers. This quality help organization to improve relationship with customer and ultimately it makes a business organization profitable (Pride & Ferrell, 2012. p192).


2.5.3: Factors Influencing Consumer Behaviour: Consumer buying behaviour can be affected by numerous factors. Kumar (2010. P219) indicates some factors which are influencing consumer buying behaviours:

Factors that influence consumer buying behaviour. (Kumar, 2010, p.129)

2.5.4: Models of Consumer buying behaviours: On consumer buying behaviours, many prospective authors of marketing studies made some models, which are very useful to understand this concept. These model normally discuss many stimuli, influence factors, the decision making and result. In this section- Kotar’s, Engel’s, Hawkin’s models of consumer buying behaviour should be mentioned.

Kotler’s Model of Buyer Behaviour:

Kotlar (2000, p.161) shows a model of buyer behaviour:

Marketing Stimuli

Other stimuli Buyers Decision

Buyers Characteristic

Buyers decision process

Marketing mix

*Product *Place *promotion *Place

*Political *Cultural *Technological *Economic

*Choosing of brand *Choosing of products *dealer choice *timing of purchase *amount

*Psychological *personal matter * cultural matter *Social matter

*Problem finding *information *evaluation *decision taking *post purchase behaviour

Model of Buyer Behaviour (Kotler, 2000. P161).

Factors Influencing Consumer

Buying

Culture:

Culture, Sub-culture, Socio class

Social:

References group, Family, roles and status.

Personal:

Age & life cycle, education, economics situation, life style, personality, self-concept

Psychological:

Motivation, perception, learning, belief, attitude


This model of Kotler shows that, how consumer think about marketing and other factors. Afterward, consumer makes purchasing decision certainly with the influence of their characteristic. At the end customers do post purchase behaviour which is the total out comes from the process, it can be negative or positive.

Engel, Blackwell & Miniard (1995, p155) showed buyers behaviour model more descriptively:

Consumer decision process model. (Engel, Blackwell & Miniard,1995, p.155)

Engle’s consumer decision process shows that, how different factors impact on environmental matters and individual customers. All of these factors have a vital role in customer purchasing decision making process. Memory recall also encouraged by this process, which is used to know whether products and services are satisfactory of not.

Stimuli:Market & others

Exposure

Attentio

Comprehensio

Acceptance

Retention

Memory

Internal search

External Search

Need recognition

Pre-purchase alternative evaluation

Purchase Individual differences:

Motivation, consumer resources, Knowledge, personality values, attitude

External Influences:

Cultural, social matter, family, sitation, personal influences

Satisfaction Divestment

Dissatisfaction

Consumption

Post purches alternative evaluation

Search


Hawkins et al (2001, p.26) have given a model of consumer behaviour, which is simple and easy to understand:

Experiences and acquisition

Model of consumer behaviour (Hawkins et al, 2001, p.26)

Hawkins et al (2001) think that- self concept & life style are the central part of the buying behaviour process. In addition, consumer’s needs and desire can be affected by external and internal influences. Through this process a consumers gain experience of the products and services and come to know, are they satisfied or not.

External Influences: Demographic, culture, sub-culture, reference group, social status, family, marketing activities.

Self-concept & life style

Internal Influences: Memory, perception, personal choice, learning, motives, emotion, personality and attitude.

Decision process

Recognising the problems

Information collecting

Alternative evaluation

Outlet selection and purchase

Post purchase process

Experiences and acquisition

Needs

Desire


CHAPTER THREE: RESEARCH MATHODOLOGY

3.1 Introduction: This is a mandatory requirement for a research to define how the research had been conducted, it means defining the methodology of the research. Research methodology should be done in the primary stage of research. The way of collecting data depends on the type of research but it is better to collect data through interview and questioners. However, the aim of this chapter is to describe how and by which method the research has been done by the researcher. Another aim of this chapter is to justify and explain the method, which is taken to collect the necessary primary data for this research. Furthermore, this chapter focus and examine research aim and objectives in relation with research methodology. In addition, this chapter is to find out the strength and weakness of the methodology for this research and ethical consideration.

3.2 Research Paradigm: The aim of this research is to identify the impacts of promotional strategies on consumer buying behaviour. Hollister has been taken to account for case study to do this research. Onion research model which is introduced by sunder, Lewis and Thornhill in 2008 has been used in this research. There is a centre point in this model, where belongs the techniques of primary data collection and analysing them. However, this model includes five more layer and these layers need to be done before entering the centre point (Saunders et at, 2009). The model ‘Research onion’ is shown below:

Figure: Research Onion (Saunders et al, 2008).


Briefly, In view of aim and objectives of this research the most perfect approach of collecting primary data would be taking interview from management of pointing organization and questioners from consumers of Hollister’s product.

3.3 Research Philosophy: The research philosophy is the vital hypothesis about how the researcher views the world. These assumptions or hypothesis support the research strategy and the method of research as a part of strategy (Saunder et al 2009). Johnson & Clark (2006) state that, A business study researcher should be aware of philosophical commitment, which a researcher go through the choice of research strategy, because it has a very important impact on what a researcher does, understands and investigates. In addition, research philosophical informed is not so much important, but it is important for researcher to know, how well the researcher able to reflect on philosophical choice and defend them from alternatives.

There are two ways of thinking about a research philosophy, they are: ontology and epistemology. Ontology means, the nature of the reality, the assumption of researcher about the way the world works also the commitment to the particular view. There are two types of ontology aspects: Objectivism and subjectivism. Objectivism stands for, how social body exist independent of social actors. Subjectivism means, understanding and realizing the internal meaning that individual attach to social facts. On the other hand, epistemology is the acceptable knowledge in particular area of study (Saunder et al, 2009).

This layer symbolizes how knowledge is developed and the nature of that knowledge. Saunder et al (2009, p.138) suggest four types of philosophy, they are: Pragmatism, positivism, realism and interpretivism.

3.4 Research Approach: In this layer of the model, we can find two types of approach, they are deductive and inductive. Saunder et al (2009) indicate deduction as a testing theory and induction as a building theory. A researcher can use deductive approach, in where researcher can develop hypothesis, theory and a research strategy to test the hypothesis. On the other hand, in inductive approach, researcher can collect primary data and analyze them to develop a theory. Moreover, induction owes more to interpretivism and deduction for positivism (Saunder et al 2009). Burney (2008) indicates that- inductive approach generally waves from specific to the general where deductive interweave the inductive approach, it begins with general and finish with specific. Experimental studies show that, inductive conception used for arguments where deductive approach works on rules, principle and laws. Inductive approach helps to collect informal, natural and exploratory data. The researcher determined to go for inductive approach. It assisted researcher to gather related data through questionnaires to achieve the research objectives.

3.5 Research Strategy (Case Study): There are quite a few types of research strategies that can be used in the research. Some of these research strategies are deductive and some are straight for inductive research method.


Choosing a research strategy depends on what type og research being undertaken. Research strategy helps a researcher to collect data systematically rather than irregularly.

Each research strategy may be employed for descriptive, exploratory and explanatory research (Yin, 2003). Saunders et al (2009, p141) showed different types of research strategy:

1. Experiment; 2. Survey; 3. Case Study; 4. Action research; 5. Grounded theory; 6. Ethnography and 7. Archival research.

Robson (2002, p.178) suggests that- ‘‘Case study is a strategy for doing research which involves an experiential investigation of a particular current occurrence within its real life circumstance using multiple sources of evidence.’’ The case study strategy will be very interesting to the researcher if the researcher wants to gain high understanding of the context of research study (Morris & Wood 1991). The case study strategy able to answer the question of ‘why’, ‘What’ and ‘How’ questions. Where ‘What’ and ‘How’ questions more concern with survey strategy, for that reason, case study is mostly adopted in explanatory and exploratory research (Saunders, Lewis & Thornhill 2009, p.146).

Yin (2003) shows four different case studies under two different dimensions, they are: Single case vs. Multiple Case; & Holistic case Vs. Embedded case. Single case study is used only in critical case and multiple case studies are used for more than one case to generalise the finding. On the other hand, in holistic vs. Embedded, holistic is analysing something only on an organization, if there are some other units of organization are analyzed than it will be embedded case study.

The author of this study had chosen case study as it is suitable for this kind of research. To achieve the objectives and answer of the research questions, the researcher needed to take survey and interviews. As ‘How’ and ‘what’ question refers to survey strategy and also within case study strategy and interview is in case strategy model, the researcher had to adopt case study strategy.

3.6 Research Method: Saunder et al (2009) classified research choice with two research methods, they are- Mono method, multiple methods. Mono method indicates either qualitative or quantitative data collection. On the other hand, multiple methods have two categories: multi-methods and mixed methods. Multi-method has a combination of quantitative studies and qualitative studies. Tashakkori and Teddlie (2003) stated that- Multi-method is the combination of more than one technique of data collection. Mixed methods approach use for both quantitative and


qualitative data collection, analysis and in research design. Mixed methods also subdivided by mixed method research and mixed-model research. Mixed method research uses parallel or sequentially quantitative and qualitative data collection techniques and data analysis but does not merge them. On the other hand, mixed-model research combines both types of data collection and analysis (Saunder, lewis and Thornhill 2009). Below this classification is shown:

Figure: Research Choice/ Methods (Saunder et al, 2009).

Multiple method of research is very popular in business research. It is useful to undertake multiple methods or mix method for business research. The author of this study has taken mixed-model research as quantitative and qualitative data will be collected and analyzed and also they will be combined. The research has done to find out the impact of Hollister’s promotional strategies on consumers buying behaviours. In this case, the researcher will arrange an interview with Hollister store manager and will do a survey through questionnaires from customers. After collecting these data, researcher will combine them to find the objectives.

3.7 Time Horizon: This is very important question for a researcher, how long time is getting for a research? It can be snapshot for a particular time or a series of snapshot that would be presented over a given time (depends on research questions). Time horizon is two types: Cross-sectional and Longitudinal (Saunder, lewis and Thornhill 2009). If the research is bounded by short period of time then it’s called cross-sectional. It is often occupy on the survey strategy (Robson 2002). Within longitudinal time horizon, researchers get over a period of time and have the

Research Choichs / Research Methods

Mono method

Multi-method (Quantitative Studies)

Multi-method(Qualitative

studies)

Multiple methods

Mixed-method research

Mixed-model research


possibility to re analysis. As this research has a time restriction, the researcher of this study is in cross-sectional time horizon.

3.8 Data Collection and Data Analysis: For a researcher, this layer is a very important to develop a theory. As it is the last layer of onion model, all analysis must be done in this stage of research, as all information are collected in previous layer. The researcher of this study collected all data through deep interview from Hollister’s manager. In this case, researcher was able to take face to face interview from Hollister, Stratford city, London. Moreover, the researcher successfully had done a customer survey through questionnaires (see appendix).

Data collected from Hollister’s manager on promotional strategy through interview are actually primary data (see appendix). These primary data helped the researcher to find out the actual promotional strategy of Hollister and its strength and weakness. On the other hand, through questionnaires, the researcher would able to know real consumer’s perception on Hollister’s promotional strategy. After collecting those data, researcher combine them through difference theory to find out the impact of promotional strategies of Hollister on consumer buying behaviours.

3.9 Ethical Consideration: To support the aims of research ethical principles have a significant role also ethical norm

helps research to reduce the total error and it helps to get the true knowledge of a subject. It

also shows behavioural suitability towards research in subject matter of participants

(Saunders, Lewis and Thornhill, 2009). Shamoo & Resnik (2009) stated that- ethical

standards promote the aims of research such as truth, avoidance, error and knowledge. The

important responsibility of researcher is to respect and take account of participant’s

confidentiality and right for the research purpose. In order to conduct this research, during

taking questioniries and interview with manager, the nature and purpose of this research was

informed to respondents. in addition, in this study, participants were mandatorily to give

approval to take part in the study also it was informed to the participants about their right to

withdraw from the study at any point without consequence.

3.10 Strength Of The Methodology: The researcher established all probable justifications to obtained result interpretation; this is the strength of this research. Depends on the aim of the study, the research strategy is very clean and specific. To evaluate the research, speciality is considered as a part of the research methodology. On the other hand, the author of this study has experience to work in Hollister, so it is one of the strength of the study. As researcher worked in store, customer service related job, researcher can find some internal information easily. Such as the differentiation with other competitors, uses of promotional strategy included sales promotion etc.


3.11 Weakness Of The Methodology: Although there are some strengths of the methodology, it also holds some downside. To collect quantitative and qualitative data, researcher needed to take direct interview, questionnaires and previous secondary data. It is known that, these all types of data collection sometimes bit harder. In addition, most of the organizations don’t like to provide all internal data, mainly strategic data. The aim of this research is to find out the consumer behaviour that affected by Hollister’s promotional strategy and this is most sensitive part of an organization because competition and success of competition depends on these kind of strategy. So it would be difficult for researcher to find out the real scenario. Moreover, Hollister is totally a difference lifestyle brand and consumer’s perception on Hollister is difference. Competitor’s analysis would be bit confusing because Hollister has unique style of doing business. Furthermore, the time binding and word limit for research are very big considerable hinders.


CHAPTER FOUR: DATA FINDING AND ANALYSIS

4.1 Introduction: The aim of this chapter is to present primary and secondary data that collected by survey and interview and from previous research and to analyze them. In this chapter, Firstly secondary data would be analyzed secondly primary data. Percentages and number of the responses on each answer of the questions will be shown separately. Pie chart, bar chart and table were used to show collected data. The opinion of interviewees will be also shown in this chapter. The researcher showed the finding of each question from questionnaires and interview. The researcher worked on survey that had been taken from Hollister’s customer to know the consumer buying behaviour. The findings from survey and interviews will be analyzed at the end of this chapter, also findings from the survey and interview will be integrated together to find the answers of research question.

4.2 Secondary data: The value of applying secondary data for marketing research has been considerable all over the history, continues today and assures to grow up in future. Its worth is its ability to increase usefulness and efficiency of marketing research (Patzer 1995).

In this section of the chapter, all kind of analyzed data on Hollister marketing will be shown. The all information’s mainly collected from different articles that are on Hollister marketing.

4.2.1: Promotional Strategies of Hollister by different authors: Cardona, M (2004) published an article on special marketing report- Hollister in advertising age:

Hollister’s success is very satisfactory compare to its parents brand Abercrombie & Fitch. The CEO is planning to open more store world wide as it is successful brand. In 2004, store sales were grown up 4% during the second quarter where Abercrombie & Fitch were down by 6%.

Goldman Sachs & co stated that- ‘‘Hollister’s growth is very high, it has a very big impact on the company each quarter.’’

The CEO Mike Jeffries thinks that- ‘‘A&F wants to make Hollister an aspirational brand for teenager. Loyalty program, club Cali and Hollister website are its main marketing tools. Club Cali is very effective to make permanents customer, because through club Cali, Hollister is giving customer variety of perks which includes gift cards and entertainment related prized based on money spent.


Chandler, M (2009) talked about Hollister’s decoration and promotion:

Inside the store, instead of making a calm environment as beach, Hollister made itself as a nightclub which sometimes makes negative experience on shopping and brand. Chandler has given some recommendation for Hollister decoration in this article:

• Hollister should be more confident on target market. Because all teenager wants their parents to come in the store to buy cloths.

• Lighting is one of the problems. Hollister’s lighting is so dim and it is very possible to happen an accident. So Hollister should consider it.

• Hollister should increase its space for women to move. When it is busy, people cannot even move where fake palm trees block lots of space.

• Hollister should have mirror in the shop floor as changing room; it would save customer’s time.

• So Cal cologne scent is spray directly on Hollister’s cloths, customer might be sensitive on perfume, so Hollister should more conservative on that.

Jnhall (2010) talked about Hollister’s promotion on Jade’s blog under title Hollister and AE marketing Mix:

Hollister promote their product through a sales sign posted up at their stores. Sometimes they have some like this around the shopping mall. The aim is, to attract customer when they walk through. Moreover, Hollister put all sales information on website, so that, customer can visit the website and come to know what is new or what is in the sales.

Waters. C (2012) in an article on smart business talked about sales of Hollister through a interview of Mike Jeffries:

Return of investment on Hollister’s international is superior. Hollister yearly sales is about $485.6 million although it sales products in cheaper price than A&F.

4.2.2: Information From A&F and Hollister’s Annual report: There are some promotional facts, which are discussed in A&F and Hollister’s 2009/10 annual report:

In store experience and store operation:

In store experience is the primary tools of this brand. The company highlight on sense of sound, sight, touch, smell and energy by employing visual presentation on products, marketing in store, fragrances and in store model & associate to support life style of the brand.

• In store marketing is designed to express the personality and principle elements of the brand. The store design, furniture and music all carefully fixed to make a good shopping experience.


• In store associate, model’s and managers are the key element of making a brand’s lifestyle atmosphere.

Direct –To-Consumer Business:

In 2009, this company started doing business online on its website. The website emphasizes the brand lifestyle and its design. The total revenue from net sale in 2009 was $290 million represents 9.9% of total sale.

Advertising:

Hollister believe in store experience to be its main form of marketing. The company always try to show brand’s lifestyle. Moreover, Hollister is using social media as one of the advertising tools and they think it makes company’s world wide ironic status.

Seasonal sales:

Hollister has few sealing seasons, they are: spring, back to school (august), Holiday (November, December), winter and summer sales.

4.2.3: SWOT analysis by Jnhall (2010) & mba skool: Strength:

• Have sale around the holidays and certain occasion. Beside clothes they have other accessories such as: flip flop, belt perfume and other items that draw customer’s attention.

• Launched in 2000 but got huge attention of teens through very special way of direct marketing. Hollister’s merchandise have large print of brand with fictional establishment date, which called walking self-marketing and it gives a century long legacy.

• This brand maintains lower price level than A&F. • Rated among five lifestyle brand in USA. • The store outlook and inside big screen make them different.

Weakness:

• Because of high price, customers sometimes don’t want to buy products. • Hollister is mostly restricted in USA. • Have some controversy not to following many regulations in its retail stores.

Opportunity:

• The Hollister stores have opportunity to catch new trends. • Brand reputation is high and still growing.

Threat:

• If they cannot catch trends, than people will not buy Hollister’s products.


• Hollister has marketing competitors like American eagle, which is the similar clothing store.

4.2.4: Finding from Secondary Data: • Hollister has different kind of promotion, such as: advertising, sales promotion,

seasonal promotion, decoration, store outlook, model, store associate, So Cali club etc.

• Hollister believe in store advertisement and social network. • Hollister always wants to emphasize brand lifestyle. • Customer has some bad experience on store lighting. • Customer thinks that Hollister does not have enough space to walk in store in busy

time. • In store model has a good impact on customers. • Through social median and its differentiation, Hollister is making permanent

customers.

4.3 Primary Data: The key benefit of primary data is that they will answer research question more expressly where secondary data are sometimes unable (Lamb et al, 2012).

To collect primary data, the author used survey through surveymoney.com and requested Hollister managers to arrange interviews. Below the finding from survey and interviews are discussed and tried to analyse them separately, at the end of this section, survey finding and interviews are integrated together to find the research question answers.

4.3.1: Finding from the survey: The questionnaires consists of ten questions with some sub question under number six and nine. The total number of responses was ninety one until writing this report. As the researcher mentioned it above, it was an online survey and the researcher used surveymonkey.com to complete this project. Below with the print screen the number of responses has been shown:


First two question of this survey was demographic and rest of the questions was to find out the perception of customers on Hollister’s promotional strategy. Below the researcher, tried to show the finding from questionnaires:

Question number one:

What is your gender?

Figure 1: Gender of customers.

The above figure demonstrates that, approximately of 48 out of 91 Hollister’s customers are male, on the other hand, 43 out of 91 responses are female.

Question Number Two:

Which category below includes your age?

Male, 52.70%

Female, 47.30%

Gender


Figure 2: Age criteria.

The above figure illustrates that, the leading age of Hollister’s customer is 21-29, 36 out of 91 customers are in this aged. About 24 people out of 91 are under seventeen. The number of customer, who is in 18-20 aged, is quite good. They are about 18 people out of 91. The percentage of people is decreasing when we look at older age.

Question Number Three:

How did you first come to know about Hollister? (This is a multiple choice question, customers were able to choose more than one answers)

26%

20% 40%

8%

5% 1%

0%

Age catagories 17 or younger 18-20 21-29 30-39 40-49 50-59 60 or older

0.00% 20.00% 40.00% 60.00% 80.00%

Advertisement

Hollister Products

Through Friends

Internet

Other

Advertisement

Hollister Products

Through Friends

Internet Other

Percentage 6.60% 40.70% 69.20% 25.30% 0%

How did customer come to know about Hollister


Figure 3: How customers know about Hollister

From the above figure we found that, most of the customer first came to know about Hollister through friends (63 people out of 91). 40.70% of customer attract Hollister brand through its product. Thirdly, internet has a very big influence to the customer’s to know its name; there are 23 people out of 91 who came to know about Hollister through internet. Advertisement has a less influence on customer.

Question Number Four:

How often do you shop from Hollister?

Figure 4: Frequency of shopping

This pie chart shows how many times customers are going to the Hollister shop to buy the products. 26 out of 91 are going to the shop very often.14 out of 91 customers do shop once in a week from Hollister. They are about 14 out of 91 customers. 19 customers go to Hollister once in a month and same number of customer is visiting and shopping from Hollister once in six month. 7 out of 91 customers do shop once in a year, where 6 customers do shop very rare. There are no customers, participated in this survey, who never shop from Hollister.

Very Often 28%

Once in a week 15%

Once in a month 21%

once in six month

21%

Few times in a year 8%

very rare 7%

Never 0%

How Often Customer Do Shop from Hollister


Question Number Five:

Why do you shop from Hollister? (This is a multiple choice question, customers were able to choose more than one answers)

Figure 5: Reasons of shopping

The above figure demonstrates that, brand name is the main reason of shopping from Hollister. About 68% (62 out of 91) from the surveyed customer are shopping from Hollister for its brand name. 9 out of 91 are interested to Hollister for its price. 27.50% are interested for product quality. 11 out of 91 people are going to Hollister because of advertisement. 37 out of 91 do shopping from Hollister for winter or summer sales. Clearance is the very effective sales promotion of Hollister. 52.70% of customers are coming to the Hollister to buy from clearance.

Question Number Six:

This is a (Yes/ No/ Maybe) question. Under this question, there are eight sub-questions. All of the questions are showed bellow with pie charts:

1. Do you like Hollister’s in store decoration?

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Price

Product quality

Brand name

Advertisement

Sales(winter,Summer etc)

cleareance

Other

Price Product quality

Brand name

Advertisement

Sales(winter,Summer

etc) cleareance Other

Percentage 9.90% 27.50% 68.10% 12.10% 40.70% 52.70% 0.00%

Reason's of shopping


Figure 6: How customers like store decoration

Hollister has totally difference store decoration compare with others. They want to give the store an epic look. The above figure demonstrates that, 71 out of 91 of customer like Hollister’s store decoration. 14.30% were confused about the answer where 7.70% don’t like Hollister’s in store decoration.

2. Do you think in store model is an effective strategy?

Figure 7: Effectiveness of models

Yes, 78.00%

No, 7.70%

Maybe, 14.30%

Yes 79%

No 8% maybe

13%


About 79% customer think that, Hollister’s in store model strategy is an effective strategy. Very less number of people doesn’t think that it is a wise strategy, it is about 8% of 91 people.

3. Do you think Hollister should increase TV advertisement?

Figure 8: Customer's thinking about advertisement

From the above chart, it can be easily found that, most of the customers think Hollister should increase TV advertisement. The number of customer in this category is about 72 out of 91, which is 79% of all surveyed customers.

4. Should Hollister start sponsoring in the events to increase its publicity?

Figure 9: Event sponsoring

The above chart shows that, majority customers (74.70%) want Hollister to start or increase sponsoring on events, where only 6.60% (6 out of 91) don’t agree with this condition.

79%

7%

14%

Yes

No

Maybe

Yes No Maybe

Percentage 74.70% 6.60% 18.70%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%


5. Do you think Hollister should increase its sales promotion?

Figure 10: How customers like the sales promotion

In recent year, a very good number of customers are attracted by Hollister sales promotion. In few store, they are already doing clearance. Usually customer can buy Hollister’s product in a very cheaper price from clearance. On the other hand, Hollister is giving percentage off in different seasons, such as, summer, winter etc. The majority percent of customer 75% (68 out of 91) think that Hollister should increase its sales promotion.

6. When you see Hollister’s promotion, does that influence you to go store and buy Hollister’s product?

Figure 11: Influences of promotion on consumer

75%

4%

21%

Yes No Maybe

Yes, 71.40%

No, 7.70%

Maybe, 20.90%


Above figure illustrates that, 71.40% of surveyed customer (65 out of 91) are influenced by Hollister’s promotion. They go to the store when they see any Hollister’s promotion. But Hollister’s promotion does not attract about 8% of surveyed customer (7 out of 91). On the other hand, 21% of customers (19 out of 91) are sure about this. They ticked in the maybe option.

Question Number Seven:

In your eyes, what makes Hollister different from others? (This is a multiple choice question; customers were able to choose more than one answer).

Figure 12: How customer differentiate Hollister

The aim of this question was to find out the main reasons of being different from other from customer perception. From the above figure, we can see that, customer voted in store model most from these choices.

Question Number Eight:

Which of the following factors influence you to buy from Hollister? (This is a multiple choice question; customers were able to choose more than one answer).

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

In store Model

Strategy

Simplicity Lifestyle Others

Percentage 58.20% 42.90% 27.50% 2%


Figure 13: Factors that influence customers to buy

Through this question, the researcher tried to find out the facts that influence Hollister’s customers. The above figure demonstrate that, Brand image influence customer most, about 80% customers (73 customers) voted brand image in this question. In store model is coming in the second place. 44% (40 customers) think that, in store model influence them to go to Hollister. 24 customers from 91 want Hollister to increase sales promotion..

Question Number Nine:

Under this question, there are six sub questions. They all are about agreeing or disagree types questions. Below the researcher have shown them with different types of charts:

1. Hollister’s sales promotion is very effective.

Figure 14: Effectiveness of sales promotion

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Promotional sales

Brand Image

Advertisement

In store decorat

ion

In store Model

Other

26.40% 80.20% 5.50% 20.90% 44.00% 1%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Strongly Agree

Agree Neither Agree

nor Desagre

e

Disagree

Strongly

Disagree

Percentage 46.20% 33.00% 14.30% 3.30% 3.30%


Above figure demonstrates that, from 91 responses, 72 were strongly agreed. On the other hand6 customers were strongly disagree and disagree with this statement.

2. Clearance of Hollister attract new customer.

Figure 15: Effectiveness of clearance

From above chat, we can see that, 74 out of 91 customers either agree or strongly agree with the statement, where only 5 customers are not agree.

3. Hollister’s promotional strategies can make new customers.

Figure 16: Customers Thinking About promotional strategies

43%

39%

13%

3% 2%

Strongly Agree

Agree

Neither Agree nor Desagree

Disagree

Strongly Disagree

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Strongly Agree

Agree

Neither Agree nor Desagree

Disagree

Strongly Disagree

Strongly Agree

Agree Neither

Agree nor Desagree

Disagree Strongly Disagree

Percentage 40.70% 38.50% 14.30% 3.30% 3.30%


Above figure shows that, most of the customer think that Hollister’s promotional strategies can make new customers. 40.70% responders (37 out of 91) are strongly agreed and 38.50% responder (35 out of 91) agreed with that.

Question Number Ten:

In the scale of five, how much would you give to Hollister’s promotional strategies?

Figure 17: Rating by customers

The above figure demonstrates that most of the people like Hollister’s promotional strategy and they given it highest mark, although there are some exception with few responded. 56% of responded about 51 people given five in the scale of five. 28.60% responded given four in the scale of five. 12.10% given three, 2.20 responded given two and 1.10% given one. Hollister’s promotional strategy got an average rating of 4.36 in the scale of 5. This is the positive side of Hollister’s promotional strategies.

4.3.2: Finding From The Interview: The researcher was able to arrange interviews from Hollister’s managers. The researcher had taken three interviews from different managers. From them, one was short interview at the same time, In addition, the researcher requested for interview question’s answers from new store opening manager through email, as new store opening manager has more knowledge about marketing and the all are controlled from head office. The answer of each interview questions was summarised accordingly and also the researched added some important individual opinions are mentioned:

First three question of the interview was demographic. Below they are shown:

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Five Four Three Two One Percentage 56.00% 28.60% 12.10% 2.20% 1.10%


Question Number One, two and three:

There were two male (Mr. Samer & Mr Asif ) and a female (Nadia Vega) interviewees. From them, one night manager, one shift manager and another one is new store opening manager. Shift and night managers’ salary level is about £27,000 and new store manager did not disclose this information.

Question Number Four:

At this moment, what promotional strategies are taken by Hollister?

Mr Samir stated that, ‘‘up to i know, they don’t do any TV adverting at all but they arrange different kind of big parties, events and sponsor in different festival, where young people come most, aged between 16-20, actually school or college going dudes and betty. In that kind of events or festivals, Hollister try to promote its products and also offer them to work for Hollister. They use people to make market for them. Secondly, Hollister’s showing its name and symbol on its product, such as T-shirt, Polo and its symbol on Shirt, denim etc, that is how they made the Hollister brand.

Nadia Vega stated that – Hollister’s promotional strategies are- in store model, store decoration, sales, and clearance. Hollister also works on fragrances, music, lifestyle and Hollister do life guard presentation on store opening day.

Question Number Five:

What is the main promotional strategy among them?

The all interviewees think that in store model is Hollister’s main promotional strategy, as it attract customer and it made them difference from others. Maximum permanent customer of Hollister’s are mainly attracted by its in store model. There are always more than two model stand in front of the store with wearing Hollister’s cloths. When people walk around the shopping mall, they see these models and this influence the people to come to the store and buy products.

Question Number Six:

What kind of sales promotion Hollister does have?

All of the interviewees answered same- Hollister does have clearance, winter sales, and summer sales, back to school etc. In seasonal sales Hollister gives up to 50 % off on some products.


Question Number Seven:

What advertising Hollister is doing?

Mr Samir said that – ‘‘Hollister is not doing any TV advertisement in UK, i am not sure about USA. Even they are not promotion in newspaper, magazine or in any billboard. You know other company is using London buses body to advertise but Hollister is not going that way.’’

Mr Asif stated that- ‘‘Hollister is not doing any TV advertising at this moment but they are putting banners outside of the store and shopping mall, that’s all what they are doing advertisement from my knowledge.’’

Nadia vega added lifeguard show, bannaer and advertising in the events with this ansawer.

Question Number eight:

In your opinion, how effective are these promotional strategies?

Mr Samer stated that- ‘‘Up to i know, Hollister is in UK about six years and USA long time. As you know, in recent years Hollister is opening lots of store around the world. Why they are opening the store? Because Hollister does have lots of customer’s demand, and how does this demand is created? Because of Hollister’s marketing strategies are creating more customers. So i would say, defiantly these promotional strategies are effective enough.

Question Number Nine:

How effective is the in store model strategy?

One of the interviewees stated that- ‘‘the youngsters are working here; most of them are working part time, mainly in their holiday. As i told you, Hollister is using people to expand its brand name. The all employee who is working here, they are saying their friends about Hollister. On the other hand, people are attracted by our models. It makes Hollister different from other clothing store. Overall I think it is very effective strategy.’’

Another interviewee says that- ‘‘Model who work here bringing customers and their friends are getting discount through them, it increases our sales and also customer are attracted by our models.’’

Question Number Ten:

In your view, are customers attracted and happy with Hollister’s promotion?

Mr Samir said that- ‘‘people are happy with clearance. Last one year, we sold lots of clearance. In the morning before opening the store, customers make queue in front of the store, when we open the store maximum of them go to clearance. You cannot believe, before afternoon, we used to sell our entire clearance product. I think they are happy.’’


Question Number Eleven:

What Hollister is doing to attract more customers?

Mr Asif said that- ‘‘Hollister is giving discount to customer through its employee. Currently, Hollister is providing a friends and family card. By this card, customer can get 20% discount, in Hollister and it sister brand Abercrombie & Fitch and Gilly hicks.’’ (See Appendix 4).

Question Number Twelve:

What is the main reason of the success of Hollister in competitive market?

Mr Samir thinks that, Hollister mainly work to attract teenagers. The fashion, music, and model everything is all about young mind. Teenagers are always crazy about brand and fashion, where Hollister does have everything. Hollister’s is totally different from other clothing giant and customers always want something different. Hollister is using this psychology. I think these are the main reasons of Hollister’s success.

Question Number Thirteen:

Is there anything you would like to recommend or advice in my study?

Mr Samir advised- Hollister is adopting totally different strategies. It would be very hard for you to find the actual data because the upper level management always wants to keep their information secrete. As this study on promotional strategy, i would say, focus on our models and sales. We don’t have that much advertisement. All of the strategies are created to keep Hollister different in the eyes of customers.

4.4 Data Analysis & Discussion: The aim of this section was to fulfil study objectives by analysing the survey and interview

also to make an answer by comparing interview and survey result. First of all, this section

analyzed the interview finding to know the present condition of promotion strategies of

Hollister. Secondly, the author analyzed the survey findings, to illustrate the consumer

buying behaviours on Hollister’s promotional strategies. Finally, the data of the both findings

are interpreted and interfered here to find the impacts of promotional strategies of Hollister

on consumer buying behaviours.

4.4.1: Analysis of Interviews: Through the interviews analysis, the author tried to know, what are the present promotional strategies that are taken by Hollister? How effective are they? Etc.

What are the present promotional strategies that are taken by Hollister? (Questions Number 4- 7).


From the deep interviews of three managers, the author found that Hollister is taking four kind of promotional strategies. Below there were being discussed:

In store Model:

In store model is Hollister’s main promotional strategies. In store model strategy made Hollister totally difference from other clothing stores.

Some Facts of Model strategy:

• All models were Hollister’s cloths and other products. • There are always two or more than two models stay outside of the store. They are

normally called lifeguard. • All girl models work inside the store. • The models who work inside the store helps customer to find the desired products. • Customer’s are interested to take picture with models, mainly who work as a lifeguard

in front of the store.

Sales:

Hollister has few types of sales in Hollister, they are- winter, summer, holiday and back to school. From the interview, the author found that, these kinds of sales are very effective in UK. In this kind of sales Hollister is offering up to 50% off in some particular products in store or online.

Source: Hollister.com


Clearance:

Clearance is one of the sales promotion that taken by Hollister. It is recenty most effective strategy in london. Only in some store, hollister does have clearance. Fortunatly, in westfield, stratfordcity, Hollister has clearance section and the author was able to see the strategy in person. One of interviwees stated that- ‘‘ Few month’s ago, we used to sale lots of clearance in everyday, even sometimes we sold clearance more that full price but now we dont have enough stock for clearance.’’ Normally, customer can get Hollsiter’s clothes in a very cheaper price from clearance. In every two weeks, hollister reduce the clearance price.

Music:

Music is a sensitive promotional strategy to attract customer. Hollister alwayes trying to make a different store enveronment for customers. They have very good sound system. Hollister is known to play alternative rock and pop music in store.

Store decoration:

Store decoration is another important fact of hollister’s promotion. Store decoration made hollister totally different from other colothing store. Hollsiter’s aim to make it’s store looks epic. It is real that, if a customer go to hollister for first time, the customer will feel different.

Advertising:

Hollister never went for traditional promotional system. Hollister is not investing money on advertivement like others. There are no TV comercial of hollister in london. But hollister is puting big banners out side of shopping males mentioning different kind of seasonal sales.

How Effective are these strategies (Question Number 8 and 9):

All of the interviewees mentioned that, in store model and sales is Hollister’s main promotional strategy. They also mentioned that, these two strategies are very effective among the hollister’s promotional strategies. Below the brief discussion how they are effective:

In Store model:

Customers are mostly attracted by Hollister’s in store model. It makes Hollister different. Models need to wear Hollister’s clothes, when customers see it; customers usually want to buy it. On the other hand, when people walk through the Hollister’s gate, they see models standing in front of store and that makes them to come inside the store.

Sales Promotion:

Hollister has seasonal sales and clearance all over the year. Sales promotion is very effective promotional strategy of Hollister. Young people are crazy about Hollister’s products. As Hollister give sales on particular types of product, people come to the store to buy them. As one of the interviewees stated – ‘‘Few month’s ago, we used to sale lots of clearance in


everyday, even sometimes we sold clearance more that full price but now we dont have enough stock for clearance.’’

Music, Store Decoration & Advertising:

These two strategies are controversy. Music is obbiously quality strategy of Hollister but some customer are complaining about. On the other hand, store decoration makes hollister different but still some customer does not like it. Finally, hollsiter is not adopting advertising tools effectively. So music, store decoration and advertising are not very effective strategies of hollister.

What effect does hollister promotions have on Customer buying behaviour? (Questions Number 10-11):

Beside hollister’s brand image, there are some issues that has impacts on hollister’s customer, sales promotion and instore model strategies should be mentioned in this case. One of the interviewes stated that- ‘‘ Huge number of customers are comming in our store for clearance and seasonal sale.’’ So, clearance and seasonal sales have a very good effect on customers. On the other hand, many customers are influenced by hollister’s models. This is a psycological thing that, when customer see a T-shirt or a swet pant on a model, he or she get influence by himself to buy that T-shirt or swet pant. Additionally, almost every customer who is buying from hollister like to take photo with hollister’s model. The author would say, Sales promotion and in store model have a very good effect of consumer buying behaviours.

4.4.2 Analysis Of Survey:

Survey finding are analysed into following four categories:

Categories of customer and regularity of doing shopping from Hollister (Question Number 1-4):

The ratio of male and female customer of Hollister is 51:49 and most of them are in the age of 17-29. So we can say, Hollister’s most of the customers are youngster. It goes with company aim. Hollister targeting market is teenager people and Hollister is successful in this case. From question number three, we found that, most of the customer first come to know about Hollister through friends, Hollister products and internet rather than advertisement. Hollister’s products work as advertisement in this case because Hollister mention its name on maximum of Hollister’s product. The frequency of shopping from Hollister of these customers is impressive. Maximum of the customers, do shop from Hollister at least once in a month where most of them go to Hollister once in a week. It is quite good for the business as most of the customers are youngster and they are almost addicted to this brand.


The reasons of shopping from Hollister (Question number 5, 7 & 8):

From these questions, the author got some reasons, why customers come to Hollister. In question five, it was asked straight way that, why customers are doing shopping from Hollister. The main reasons of customer coming in Hollister are its brand name. It means, Hollister has already made a good brand image. In question seven, the author tried to know, why people think Hollister different from others. The main reason is it’s in store model strategy but quite good number of customers ticked on simplicity and one customer mention specifically Hollister’s store decoration. Through question number eight, the author tried to know the main factors that influence customer to go to Hollister and buy its products and the main reason was Hollister’s brand image and in store model.

In the Customers eyes, what should Hollister do to increase its customers (Question Number Six):

In this question, customers were asked, they like the stores decoration, model, sales promotion etc. The overall answer comes like this- most of the Hollister’s customer like in store model, decoration and sales promotion but they are not very comfortable with price level. In addition, most of the customers think that, Hollister should do TV advertisement, sponsoring in the events as it can makes more customers.

Customer Perception on Hollister’s Promotional Strategies (Question Number 9-10):

More than half numbers of customer think that, Hollister’s sales promotion is very effective as Hollister has seasonal sales and clearance. In term of advertisement, they were confused as Hollister does not have that much advertisement. Mainly, people think they like Hollister’s sales promotion but they don’t think that, Hollister is going to be a very big name; the reason might be its publicity. Overall, customer rated Hollister’s promotional strategies amazingly. It means, people like Hollister and its products but they are not sure about its market.

4.4.3: Integration of Interviews and Questionnaires: In this section, the author of this study tried to integrate interviews and questionnaires to find the answers, in term of study aim.

Hollister’s Promotional strategies:

From the interviews, the author found that, Hollister is taking very different kind of promotional strategies, where the management of Hollister is focusing more on in store model, sales and decoration rather than advertisement. People always like to be different and Hollister is using this on their promotional strategies. They tried being always epic and it in store decoration shows that. An organization cannot survive with a single traditional way of strategy, for this reason, Hollister is doing sales promotion and all kind of Hollister’s sales promotion are effective. Moreover, Hollister is doing different kind advertisement despite of traditional way. Hollister’s name or logo is shown on its all kind of clothes and it also worked amazingly.


Consumer buying behaviour:

This is surprising and very good for Hollister that, they are making permanent customers. From the questionnaires, the author found that, most of the customers first came to about through its products, friends or internet after that they are going to the store and most of them now going to Hollister regularly. Obviously, these customers like something different and they found it in Hollister. Although, they are not happy with its price level and most of the customers think Hollister should do something traditionally, such as TV advertisement etc. However, despite of high price and other diffident of Hollister, customers are still interested on Hollister.

Impact of Promotional strategy:

The overall impact of Hollister’s promotional strategies on consumer buying behaviour is satisfactory. Hollister’s in store model strategy made a psychological impact on customers. People are coming to Hollister and see what models are wearing and they sometimes decide to buy that product. In addition, in traditional way, sales promotion like, seasonal and clearance have a very positive impact on customers. Although Hollister does not do TV advertisements but their own product work as advertisement and it is very effective. Huge number of customers first came to know Hollister through its product and they like Hollister’s name on their cloths. Overall, whatever promotional strategies Hollister is taking at this moment have a positive impact on consumer buying behaviour.


CHAPTER FIVE: CONCLUSION AND RECOMMENDATION.

5.1 Introduction: The aim of this chapter is to conclude the dissertation. In the first place of this chapter, the researcher had evaluate the finding, afterward, the applicability of research data to the aim and objectives of this study, recommendation for Hollister, limitation of the study and recommendation for further research have been given.

5.2. Evaluation of Finding: Promotional strategy and consumer buying behaviour are most critical part of a business and the importance of these ideas is increasing day by day. For clothing and fashion industry, perfect promotional strategy should be taken but in this case business should understand buying behaviour of target market.

To get the research question’s answers, the researcher needed to search for some secondary data and take a survey through questioners from actual customer of Hollister. On the other hand, to get the actual information about Hollister’s promotional strategies, the researcher needed to take some interviews from Hollister’s manager. The researcher was successful to take, two interviews from managers of Hollister in London and exceptionally, the researcher was able to take an interview from new store opening manager from California through email. The information from new store opening manager was very helpful as new store opening manager’s work with central management of the company,

To done the survey, the researcher used electronic source and sent request to the actual customer of Hollister through social media, such as, facebook groups and page etc. The researcher got 91 responses from customers. Overall view of the customer is that, they are happy with Hollister as it is bit difference from other but some factors have negative impact on the customer buying behaviour, such as- price, lighting, in-store decoration etc.

From interviews, the researcher found that, Hollister is taking totally different kind of promotional strategies to make them different from others. Their main promotional strategies are- models, sales promotion, decoration etc where in traditional business advertisement comes in the first place.

5.3 Applicability of research data to the aim and objectives of this study: This is very important for all research to make sure that; the collected data are properly utilized to the link of research aim and objectives which make a successful research. Below the researcher examined the collected data to link of aim and objectives of this research to know whether they are achieved or not.


Objective one:

To review existing models and theories related to promotion and consumer buying behaviour. In chapter two, the researcher talked about the business, strategy, marketing, promotional strategy and consumer buying behaviour. The aim of this research is to investigate the impacts of promotional strategies of Hollister on its customer. As promotion is the part of marketing mix and it attached with strategy, the researcher reviewed briefly on business, strategy and marketing mix to know the background of promotional strategy. Later, the researcher focused on difference theory of promotional strategy, concept of consumer buying behaviour and difference model of consumer buying behaviour by Philip Kotler (2000), Engle et al (1995) and Hawkins et al (2001).

Objective Two: To identify Hollister’s promotional strategies and how they made Hollister different from other To know about Hollister’s promotional strategies, the researcher studied lots of secondary data, such as- articles and Hollister’s annual report and the researcher taken some close interviews from Hollister managers, one of them were international new opening manager. It was very important to meet the research aim.

Objective Three: To evaluate the effectiveness of promotional strategies which are used by Hollister. To know, how effective Hollister’s promotional strategies are, the researcher put some questions in survey and got some information from interview. Question number six, mine and ten in questioners and question number eight & nine in interviews gave the answers.

Objective Four: To find out the real scenario of Hollister’s consumer buying behaviour. Survey helped the researcher to find out the real scenario of customer perception on Hollister and Hollister’s promotional strategies. Through question number six, seven, eight and nine the researcher found the real scenario of customer perception.

Objective Five: To recommended the Hollister, ways to improve their promotional strategies especially in London. This objective will be filling up by the recommendation in this chapter. From study of Hollister, the researcher found some disadvantages and fault of promotional strategies of Hollister and the researcher will try to give some solution and recommendation on Hollister’s promotional strategy in this chapter.

5.4 Recommendations For Hollister: From the study on Hollister’s promotional strategies and its impact on consumer buying behaviour, the researcher some disadvantages and lacking of Hollister promotional strategies which have some bad impact on consumer buying process. In this section, the researcher would like to give some solution and recommendation to improve Hollister’s promotional strategy:


• Advertising: Hollister is not doing any advertising. As a result, many people are still unaware about Hollister, although Hollister has good reputation in some places. If Hollister does advertising on TV, magazine, newspaper than they would make more customer. In London, Hollister can use bus and tube to advertise its name and products. The researcher think that, advertisement on bus’s body is very effective, many fashion brand do advertising on bus, for example: forever 21 (One of the strong competitors of Hollister).

• Changing In store Decoration: From some article (secondary data), the researcher found that, customer don’t like Hollister’s in store decoration because the fake palm tree take lots of space and in busy time customer specially women don’t feel good to move.

• Increase sales promotion: Hollister should increase sales promotion mainly clearance. One of the interviewees said that Hollister used to sale more clearance before but now Hollister does not have enough clearance to sale and some of the Hollister’s stores in London have clearance only. So Hollister should think about, Hollister should do clearance in every store in London as customers want to buy from clearance.

• Changing in Lighting: Some customers don’t like Hollister’s lighting because Hollister make an epic in store look. Customers think that, they feel very dark in the store and it makes very negative impact on customer. Hollister should change their way of lighting.

• Sponsoring: Hollister should start doing sponsoring in big events as big sports brand like Nike, Adidas do in sports event. Hollister is a life style brand, so Hollister should not sponsor in sports even but they can select concert or other cultural programme to sponsor. It will help Hollister to advertise their name to a huge population with short amount of money.

• Changing in Music System: Many customers think Hollister’s music is too loud sometimes it crosses 90 decibels. Hollister should take more care on their music system, as too loud music can make bad impact on customer’s perception.

5.5 Limitation of the study: Time limitation was a very big hinders in this research. The researcher got two and half month to conduct this research. In this short period of time the researcher needed to review all related literature, arrange interviewees and take survey. Due to the time limitation, the researcher could not do some more interviews and survey. Word limitation was also a big hinders for this study, there should be more discussion in literature review especially under promotional strategy and model of consumer buying behaviour. In addition, due to word limitation, the researcher could not include good amount of secondary data and enough discussion in data finding & analysis.

5.6 Recommendations for future researcher: This research was done on promotional strategy and its impact on consumer buying behaviour. Hollister was taken as a case study. Hollister is a fashion and lifestyle brand. So,


promotional strategies of fashion and lifestyle brand were focused in this research. This research did not explore other categories of the business and strictly focused on fashion industry. The future researcher can take advantages from this research, if they do research on any fashion and clothing industry. In addition, if researchers do research on this topic, can get different outcomes depends how they are undertaking the research.

5.7 Summary: This chapter illustrate the entire study, to conclude the study into the impact of promotional strategy on consumer buying behaviour, using case of Hollister. The main aim of this chapter was to summarize all information from data finding and analysis and give them a shape which can be helpful for Hollister. At the first of this chapter, research aims and objective were reviewed to make sure they all were discussed and all research questions were answered. Depend on the research on Hollister’s promotional strategy and consumer buying behaviour, the researcher recommended some facts to Hollister’s management to improve Hollister’s promotional strategy and to understand Hollister’s customer’s buying behaviour. In this chapter, some recommendations were given to the future researcher on the topic understudy.


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Appendix: Appendix 1:

Questionnaire

1. What is your gender? Male Female

2. Which category below includes your age?

17 or younger

18-20

21-29

30-39

40-49

50-59

60 or older

3. How did you first come to know about Hollister? Advertisement Hollister Product Through friends Internet Other (Please specify)

4. How often do you shop from Hollister? Very often Few times in a year Once in a week Very rare Once in a month Never Once in six months Other (Please specify)


5. Why do you shop from Hollister? Price Product Quality Brand Name Advertisement Sales (winter, summer etc) Clearance Other (Please Specify)

6. Please tick yes, no or may be from following questions: Do you like Hollister’s In store decoration? Do you think in store model is an effective strategy? Do you think Hollister should increase TV advertisement? Should Hollister start sponsoring in the events to increase publicity? Do you think Hollister should increase sales promotion? When you see Hollister’s promotion does that influence you to go to the store and buy products?

7. In your eyes what makes Hollister different from other?

In store model

Simplicity

Lifestyle

Other (Please Specify)

Yes No Maybe

O

//O

//O

//O

//O

O

//O

//O

//O

//O

O

//O

//O

//O

//O


8. Which of the following factors influence you to buy from Hollister? Hollister’s promotional sales Brand Image Advertisement In store decoration In store model Other (Please specify)

9. Please choose your level of argument with following statements:

Statements Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

Hollister’s sales promotion is very effective

Clearance of Hollister attract customers

Hollister’s promotional strategy can make new customer

10. In the level of 5, how much would you give to Hollister’s promotional activities?

5 4 3 2 1


Appendix 2:

CONSENT FORM FOR INTERVIEWEES

Impact of promotional strategies on consumer buying behaviour: A case of

Hollister.

Nowshad Mourin Shawon

BA(Hons) Business and Management Studies

Cardiff Metropolitan University

London School Of Commerce

Student ID: L0044szsz1010

1. I, the undersigned, voluntarily agree to participate in this research study.

2. I have been given an explanation by the researcher (above named) about the nature,

purpose and length of this study. I have been given the opportunity to ask questions on all

aspects of the study.

3. I am aware this interview is recorded. I understand that the recordings are for the sole

benefit of the interviewer, however, an external examiner may be required to listen to the

recording.

4. I understand that all personal data relating to research participants is held and processed in

the strictest confidence and in according with the Data Protection Act (1998). I agree I will

not restrict the use of the results on the understanding that this study is purely academic in

nature.

5. I understand that I am free to withdraw from the interview at any time without needing to

justify my position and without any prejudice.

6. I confirm I have read and understood the above and freely consent to participating in this

study.

7. If you wish to remain anonymous in this study please tick the box

Name of participant

Name of researcher Nowshad Mourin Shawon

Signed Signed

Date Date


Appendix 3:

INTERVIEW SCHEDULE (QUESTIONS)

1. Gender?

□ Male □ Female

2. Position in Hollister? 3. Level of income? 4. At this moment, what promotional strategies are taken by Hollister? 5. What is the main promotional strategy among them? 6. What kind of sales promotion Hollister does have? 7. What advertising Hollister is doing? 8. In your opinion, how effective are these promotional strategies? 9. How effective is in store model strategy? 10. In your view, are customers attracted and happy with Hollister’s

promotion? 11. What Hollister is doing to attract more customers? 12. What are main reasons of Hollister success in competitive market? 13. Anything you would like to give advice in this study?


Appendix 4:

Discount card for customer (Sales promotion):

Impact of Promotional Strategies on Consumer Buying Behaviors : A case of Hollister Co.

Documents

l0044szsz1010

nowshad mourin

consumer buying

consumer buying

hlenamp

hollisters

consumer buying

sourceblamp