Chapter 2 The Marketing Plan Section 2.1 Marketing Planning
(Real-World Application
SWOT Analysis)
Losing Market Share Futura Fashions, Inc., is a hypothetical 100-store chain
that caters to a teenage market. The stores carry male and female clothing and
accessories. Sales at Futura Fashions have declined in recent months, and its
stock price has dropped 30 percent. An analyst who follows the stock believes
that the decline is due to a loss of talent in buying and merchandising. As a result,
Futura Fashions
has lost market share to its competitors. Competitors, such as
American Eagle® and Aeropostale®, have had increases in sales of 14 percent
and 27 percent, respectively. A refent report in Women's Wear Daily, a trade pub-
lication, indicates that a clothing manufacturer is considering opening its own
retail stores that will target teens.
The teenage clothing market is difficult to evaluate. Trends are important. Either
you catch them or your business suffers. So, Futura Fashions has recently hired
an experienced fashion buyer and merchandise manager. The economy is strong.
Consumer confidence is up and so is consumer spending. Recent reports indicate
a decrease in jobless claims and an increase in employment. However, inflation is
increasing slowly, so the Federal Reserve has increased interest rates a quarter of
one percent, which could make consumers less inclined to spend.
Directions Use the information above to prepare a SWOT analysis for Futura
Fashions, Inc.
Chapter 2
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