INF10003 Assignment 2 Oz Attitude Clothing PDF

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INF10003 Assignment 2 Business Scenario Report OZ Attitude Clothing Company

Due Submitted: 26 December 2020 Word Count: 2,156

Executive Summary

JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

Oz Attitude Clothing Company is a fashion retail store that currently owns and operates three locations across Melbourne. This report been produced as a guide to enable the company to expand into an eCommerce market, enhance their online presence and promote to both local and international markets. This report has explored the market within the Australian clothing retail industry, a current and forecasted performance and factors affecting the operational environment. A SWOT and Porter’s Five Forces analysis conducted on the company identifies multiple insights into their current performance. It has been revealed that Oz Attitude operates within a highly competitive market. Their strengths lie within their high-quality, affordable and sustainable products, however, a lack of technological knowledge and online presence could result in the inability to compete with new entrants and large chain retailers. Evaluation of the company’s sales during a week of operation revealed a boost in activewear interest, weekends account for the highest sales and seasonal changes, such as winter and summer, influence the purchase of new apparel. A recommendation for an online and mobile-friendly website has been provided. This mockup includes design principles of visibility, consistency and affordability to ensure ease of use and navigation. Usability guidelines were followed to ensure the website features an aesthetic and minimalist design, a match between the system and real world and visibility of the system status. In order to encourage customer engagement, extra tools have been included such as various payment options, opportunity to provide feedback and the linking of social media sites to the website.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

Table of Contents Executive Summary

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1.0 Introduction

4

2.0 PART A: Evaluation of the business

5

2.1 Industry Background and Business Model

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2.2 Target Audience Identification

5

2.3 Value Proposition

6

2.4 SWOT Analysis and Discussion

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2.5 Porter’s Five Forces Analysis Outcomes Review

8

3.0 Table Creation and Discussion

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3.1 Spreadsheet trends

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4.0 PART B: Information Portal Design

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4.1 Non-Functioning Prototype Pages

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4.2 Human Computer Interface Design Principles

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4.3 Web Usability Guidelines

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4.4 Customer Tools/Engagement Methods

14

5.0 Conclusion

16

6.0 Reference List

17

7.0 Appendices

18

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

1.0 Introduction The Oz Attitude Clothing Company is successful clothing retailer based in Melbourne, Australia. Currently occupying three brick-and-mortar locations, the owners of the company are interested in expanding their business to include an online website and develop an online presence in order to promote their product to both local and overseas markets. The purpose of this report is to analyse the impact of business processes, competing technologies and information systems on the Oz Attitude Clothing Company in order to make recommendations on the expansion into the eCommerce market. The analysis of Oz Attitude Clothing Company will look at the current clothing retail industry, the business’s target audience and value proposition. A SWOT and Porters Five Forces analysis have been conducted in order to investigate the current competitive environment. Raw data recorded during the business’s operating week has been sorted and evaluated in order to identify three trends within the company’s market. A non-functioning website mock-up has created and includes a home page, purchasing page and ‘about us’ page. Mobile-friendly versions of these pages are also included. Interface design principles, usability guidelines and customer engagement tools will also be discussed.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

2.0 PART A: Evaluation of the business 2.1 Industry Background and Business Model Clothing retail involves the selling of fashion, apparel and accessories. In Australia, the industry consists of small, independent stores and large retain chains offering products in both brick-and-mortar and online stores. Since 2016, the industry’s performance has been steady, with a revenue of $16.5 billion and an expected annual growth of 0.8%. This however has been impacted by the recent COVID-19 pandemic, which has seen the industry’s growth decline by 8.5% (Barry 2020). According to Barry (2020), industry competition has increased due to the arrival of international retailers, and a surge of technology and internet use has increased the need for online outlets. Australian stores are now required to adapt and innovate to face these changing operational environments. Oz Attitude Clothing Company was established in 1985 as a market stand in St Kilda, Melbourne. The first brick-and-mortar location opened in 1991, however, an increase in popularity now sees the company operate in three locations. Increased interest from both local and international consumers has influenced the founders to explore options to expand to an eCommerce outlet, offered as both a website and mobile store. This will offer the opportunity for the business-to-consumer (B2C) company to gain a presence in both local and offshore markets.

2.2 Target Audience Identification Oz Attitude Clothing Company is aimed at both male and female consumers who enjoy expressing themselves through the clothing they wear. The customers have a particular interest in music and sport, as a result of an existing customer base within the entertainment industry. The target audience are both young and middle-aged men and women with rebellious attitudes who are interested in sustainable, good quality clothing. 5

JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

2.3 Value Proposition Oz Attitude Clothing Company operates with an aim to provide customers with ‘cutting edge’ fashion that is functional for everyday wear, a high standard of quality and manufactured through fair and ethical conditions. The company is proud to offer high quality, sustainablymade products at affordable places. Oz Attitude’s business strategy contains the key features required of a successful value proposition. Through their strategy they communicate to the consumer their overall goals, benefits of their products and superiority within the market (Twin 2020).

2.4 SWOT Analysis and Discussion STRENGHTS

WEAKNESSES

OPPORTUNITIES

THREATS

Differentiates

Basic website with

Online presence and

Current COVID-19

themselves from

no eCommerce

eCommerce facilities

pandemic and

other clothing

facilities.

can provide extra

lockdowns may

exposure and

limit in-store

increased sales

purchases

companies by offering bold,

Extremely limited

affordable and

online presence

sustainable designs.

prevents

Collaboration

New entrants in the

interactions with

opportunities with

market offering

Founders possess

potential customers

existing client base of

similar products

over 25 years of

and limits the

musicians, sporting

industry knowledge

company’s reach

stars and youth

Large, international

personalities has

chain retailers such

and experience with their customer

Owners and current

potential to reach

as Zara, Uniqlo and

base.

staff possess limited

different target

H&M provide

computer and

audiences and raise

consumers mass-

Already established

technology

brand awareness

produced, cheap,

3 bricks-and-mortar

knowledge

Interest from

stylish products.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

locations across

overseas customers

Melbourne, offering

could expand brand

Increase in

accessibility and

and sales to foreign

production costs to

exposure.

markets resulting in

maintain locally

increased sales and

sourced,

brand awareness

sustainable options

Strong existing local customer base.

Annual winter and summer collection fashion shows held in house add value to customer’s experience.

Reviewing the above SWOT analysis, Oz Attitude can utilise their strengths to remain competitive within the market. The company can take advantage of opportunities in order to expand the business and raise brand awareness to an international market.

2.5 Porter’s Five Forces Analysis Outcomes Review

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

Rivalry amongst competitors is high within the industry. Approximately 10,871 businesses currently operate within the Australian market (Barry

Competitive Rivalry

2020). These consist of both independent stores and large chain retailers. Big competitors within the market have the resources and knowledge to advertise and offer consumers with low-cost options. Oz Attitude source their products from suppliers with fair and ethical

Bargaining Power of Suppliers

conditions as well as stringent environmental controls. Higher expectations regarding production standards may limit the amount of suppliers Oz Attitude can source from, raising the bargaining power of their current suppliers. The bargaining power of Oz Attitude’s customers is average. As the company

Bargaining Power of Customers

focusses on offerings that are ethical, stylish, high quality and affordable, consumers seeking these qualities are less likely to switch brands (Euromonitor International 2020). Some consumers, however, will give up quality for low-cost products and opt for other brands. The threat of new entrants is high. According to Barry (2020), the capital

Threat of New costs for new businesses in small to medium size are low, making it easier for Entrants new businesses to enter the market. A high threat to Oz Attitude is the risk of substitute products. According to

Threat of Substitute Products or Services

Euromonitor International (2020), large chain retailers such as Uniqlo and H&M, are adopting sustainable practices and offering ethical products.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

3.0 Table Creation and Discussion 3.1 Spreadsheet trends Information systems are a vital tool in the running of all businesses. They produce insightful information from raw data in order to gain a competitive advantage or identify trends within the market (Moore & Vargas 2017, p. 20). Through the completion of Oz Attitude’s raw data set, a number of trends have been identified. The first trend identified is that Oz Attitude’s highest sales take place over weekend days. As evident in Appendix 2, Friday and Saturday accounted for a total of $11,368.81. This is approximately 72% of the Oz Attitude’s total sales for the recorded week. A second trend identified is evident from the below graph, which shows Oz Attitude’s business activity for 2019. The graph records highest activity in the months of June, December and January. This is likely due to the release of Oz Attitude’s winter and summer collections.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

A third trend identified is the high purchase of active wear. Over the recorded period, the highest number of items sold was active wear, accounting for 126 sales (appendix 2) and a total of $4,321.74. This information suggests changes in health and fitness trends amongst consumers. According to Euromonitor International (2020), the demand for activewear has increased within the industry, beyond the base of customers who participate in physical activity.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

4.0 PART B: Information Portal Design 4.1 Non-Functioning Prototype Pages Home Page

Purchasing Page

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About Us Page

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

Mobile Website

4.2 Human Computer Interface Design Principles Consistency To ensure a consistent appearance throughout the website, similar colours, design pattern and fonts are used on all pages. The website menu bar features the same font, size and location on all pages. This is similar to the icon buttons in the corners of the screen. The design appearance and features also remain consistent on the mobile website. Affordability Graphical attributes have been included throughout the design as metaphors to ensure users are familiar with how to use the website. The home button icon features a graphic of a house. This makes it obvious that by clicking this icon the user will return to the homepage. Another example is the shopping cart button which is in the form of a shopping bag. This is clear and intuitive that by clicking this item, the user’s shopping cart will be displayed. Other examples include the magnifying glass search bar and profile silhouette icons.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

The graphical icons that have been included afford the users with intuitive clues as to how they should be used. Visibility Visibility is evident throughout all pages of the website design. All functions are clearly visible and easily located regardless of the page that the user is on. An example includes the simple menu items at the top of the page and icons that are well-spaced. As visibility makes it obvious to users what they should do next, it is an extremely important principle to include.

4.3 Web Usability Guidelines Visibility of System Status Features are included on the website design to ensure users are informed about the current state and actions and to minimise the risk of errors. An example is displayed on the product listing page which clearly notifies users if an item is sold out. This reduces the chance of customers purchasing items they cannot receive, while still displaying and advertising the company’s products. Another example of this usability is the inclusion of numbers on a user’s shopping cart. This notifies the shopper of how many items are in their cart, regardless of what page they are on. Match Between Systems and the Real World Language, concepts and icons have been included within the website design that are familiar to all users who should visit them website. Simple, clear words are found throughout the website pages. This is also evident in the menu bar, allowing customers ease of use. The graphic icons are also used as metaphors for available actions. These icons include graphics that are identifiable and familiar to all users. Aesthetic and minimalist design The website design is basic and simple, ensuring ease of use. Irrelevant actions and elements are not included, allowing for the relevant features to stand out to users. The website layout is simple and easy to navigate. A consistent illustration and images of people in clothing are 14

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included on all pages to increase aesthetic and reiterate the type of products that are being promoted and sold.

4.4 Customer Tools/Engagement Methods The Australian clothing industry is highly competitive and companies should ensure they gain a competitive advantage against others. Certain tool and features can be used to encourage customer engagement. Linking the business’s website to their social media platforms can help website traffic and potential sales. This also allows the business to reach potential new customers and audiences. As social media is used across the world, this offers the business the opportunity to connect with overseas markets and ultimately raise brand awareness. The use of social media also allows for public promotion by both the business and consumers. The website includes linkage to all social media platforms, in a visible and identifiable location. Giving customers the ability to provide feedback can assist the business in gaining insight and knowledge into the needs and wants of their consumers. Feedback can be received in person, via the website or on social media platforms. Feedback can be useful for a company for various reasons. Negative feedback can be addressed in order to create more positive future experiences or to make necessary changes to current products. Positive feedback can be useful in identifying things that satisfy consumers. The website design allows for customers to submit their feedback easily. An important feature to encourage customer engagement is the option for various payment methods. Including options such as credit/debit card payment, Afterpay, ZipPay and PayPal allows for more flexible payment options for consumers. This could boost sales as it does not limit purchases to only customers that have the funds available. Large purchases may also be made by customers opting for Afterpay or ZipPay.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

5.0 Conclusion The Australian clothing retail industry is highly competitive and businesses face changing environments as a result of new technology and new entrants. As a result, businesses must adapt to these changes in order to remain competitive. An analysis of Oz Attitude Clothing Company using a SWOT and Porter’s Five Forces has revealed insight into the company’s performance and place within the current market. The company’s strengths lie within their affordable, high quality and sustainable products, while threats of new entrants, substitute products and competitive rivalry are high. Raw data collected during a week of operation has been evaluated and reveals trends within the market. These trends include a rise in activewear purchases, higher sales take place over weekends and at the beginning of the winter and summer seasons. A mock-up website page has been created with the use of design principles, usability guidelines and customer engagement tools. The inclusion of these features offers an attractive, functional and eye-catching potential website design for Oz Attitude Clothing Company. This business analysis conducted on Oz Attitude offers insight into the company’s performance within the industry. Recommendations have been provided in order to enhance their online presence and expand their business into the eCommerce market.

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JESSICA SEARLE [Date] INF10003 ASSIGNMENT 2

6.0 Reference List Barry, M 2020, G4251 Clothing Retailing in Australia, viewed 17 December 2020, . Euromonitor International 2020, Apparel and Footwear Specialist Retailers in Australia, viewed 18 December 2020, . Moore, C & Vargas, N 2017, Introduction to Busin...