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

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


SUBMITTED BY:                            SUPERVISOR

NOWSHAD MOURIN SHAWON                    ELLIE SEMSAR


 NOWSHAD MOURIN SHAWON   L0044SZSZ1010                  Page 0
LSC ID: L0044SZSZ1010
UWIC ID: ST20029903
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




NOWSHAD MOURIN SHAWON                               L0044SZSZ1010                        Page i
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




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                     Page ii
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.




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page iii
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


NOWSHAD MOURIN SHAWON                                          L0044SZSZ1010                                                                 Page iv
  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

NOWSHAD MOURIN SHAWON                                        L0044SZSZ1010                                                                  Page v
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




NOWSHAD MOURIN SHAWON                                           L0044SZSZ1010                                                                  Page vi
           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


NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                      Page 1
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).




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                     Page 2
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


NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                   Page 3
(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?




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                     Page 4
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.




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page 5
   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

NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                     Page 6
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).




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page 7
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.




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page 8
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).



NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                   Page 9
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).




NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                  Page 10
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:




                               Wider division between
                               customer and marketers


         Superior need to                                      Increased competition
       convince customers                                      within industry
      who have established
                                          Growth of
        product allegiance
                                          Promotion

                                                                 Customer increased
      Higher requirement to
                                                                 selectivity
      uphold market share



                                    Greater economic risk
                                    for marketers

                      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


NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 11
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

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                 Page 12
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.




NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                    Page 13
                           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).




NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                   Page 14
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:

Culture:                                                            Social:

Culture, Sub-culture, Socio                                         References group, Family,
class                                                               roles and status.


                                             Factors
                                           Influencing
                                            Consumer
                                             Buying
Personal:
                                                                    Psychological:
Age & life cycle, education,
                                                                    Motivation, perception,
economics situation, life style,
                                                                    learning, belief, attitude
personality, self-concept

             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       Other stimuli               Buyers                   Buyers         Buyers
 Stimuli                                   Decision                Characteristic   decision
                                                                                    process
 Marketing     *Political                 *Choosing               *Psychological *Problem
    mix        *Cultural                  of brand                *personal      finding
*Product       *Technological             *Choosing               matter         *information
*Place         *Economic                  of products             * cultural     *evaluation
*promotion                                *dealer                 matter         *decision
*Place                                    choice                  *Social matter taking
                                          *timing of                             *post
                                          purchase                               purchase
                                          *amount                                behaviour


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

NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 15
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:

                                                Need recognition
   Stimuli:Market                                                    External Influences:
   & others
                             Internal search         Search
                                                                     Cultural, social
                                                                     matter, family,
        Exposure
                                                Pre-purchase         sitation, personal
                                                alternative          influences
        Attentio                                evaluation

                                                                     Individual
        Comprehensio                            Purchase
                             Memory                                  differences:

        Acceptance                                                   Motivation, consumer
                                                Consumption
                                                                     resources,
        Retention                                                    Knowledge,
                                               Post purches          personality values,
                                               alternative           attitude
                                               evaluation


                                                   Divestment
                                                                    Satisfaction
  External                 Dissatisfaction
  Search



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.




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                      Page 16
Hawkins et al (2001, p.26) have given a model of consumer behaviour, which is simple and
easy to understand:




                                    Experiences and acquisition
    External Influences:                                             Decision process
    Demographic, culture, sub-
                                                                     Recognising the
    culture, reference group,
                                                                     problems
    social status, family,
    marketing activities.                                            Information collecting

                                       Self-concept                  Alternative evaluation
                                                         Needs
                                        & life style
                                                                     Outlet selection and
                                                         Desire      purchase
    Internal Influences: Memory,
    perception, personal choice,                                     Post purchase process
    learning, motives, emotion,
    personality and attitude.
                                       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.




NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                     Page 17
   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).

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page 18
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.


NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 19
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

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 20
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:


                                                                     Multi-method
                                                                  (Quantitative Studies)

                                      Mono method
                                                                         Multi-
                                                                   method(Qualitative
                                                                        studies)
     Research Choichs /
     Research Methods
                                                                     Mixed-method
                                                                       research

                                    Multiple methods

                                                                  Mixed-model research


                  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



NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                  Page 21
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.


NOWSHAD MOURIN SHAWON                    L0044SZSZ1010                                     Page 22
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.




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 23
        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.




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 24
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.

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                    Page 25
   •   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.

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 26
   •   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:




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 27
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?


                                          Gender

                       Female, 47.30%
                                                                     Male, 52.70%




                                    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?


NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                Page 28
                                         Age catagories
                 17 or younger      18-20     21-29         30-39    40-49       50-59      60 or older
                                                      1%
                                                 5%        0%

                                            8%                           26%



                                   40%                                         20%




                                              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)




                   How did customer come to know about Hollister


                     Other

                   Internet

           Through Friends

          Hollister Products

             Advertisement

                           0.00%            20.00%              40.00%           60.00%         80.00%

                       Advertisemen         Hollister           Through
                                                                                 Internet        Other
                             t              Products            Friends
            Percentage    6.60%              40.70%             69.20%           25.30%            0%



NOWSHAD MOURIN SHAWON                         L0044SZSZ1010                                               Page 29
                                 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?

                   How Often Customer Do Shop from Hollister
                 Few times in a                    Never
                     year                           0%
                      8%
                                             very rare
                                                7%                 Very Often
                                                                      28%
                   once in six
                    month
                     21%

                                                                         Once in a week
                                                                             15%
                                    Once in a month
                                          21%




                                       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.




NOWSHAD MOURIN SHAWON                        L0044SZSZ1010                                Page 30
Question Number Five:

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


                                   Reason's of shopping

                         Other
                     cleareance
    Sales(winter,Summer etc)
              Advertisement
                    Brand name
              Product quality
                          Price

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

                                                                   Sales(winte
                                  Product     Brand     Advertisem
                       Price                                        r,Summer cleareance   Other
                                  quality     name         ent
                                                                       etc)
       Percentage      9.90%      27.50%     68.10%      12.10%       40.70%   52.70%     0.00%


                                        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?




NOWSHAD MOURIN SHAWON                       L0044SZSZ1010                                     Page 31
                                        Maybe, 14.30%



                                No, 7.70%




                                                                       Yes, 78.00%




                            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?


                    No
                    8%                 maybe
                                        13%




                                                                      Yes
                                                                      79%




                                  Figure 7: Effectiveness of models



NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                Page 32
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?




                                  14%
                      7%

                                                                                         Yes
                                                                                         No
                                                              79%                        Maybe




                            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?

                 80.00%

                 70.00%

                 60.00%

                 50.00%

                 40.00%

                 30.00%

                 20.00%

                 10.00%

                  0.00%
                                   Yes                       No                 Maybe
               Percentage        74.70%                    6.60%                18.70%


                                         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.

NOWSHAD MOURIN SHAWON                      L0044SZSZ1010                                         Page 33
   5. Do you think Hollister should increase its sales promotion?


                                        Yes        No        Maybe



                                    21%

                 4%



                                                                       75%




                            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?




                              Maybe, 20.90%

                      No, 7.70%


                                                                      Yes, 71.40%




                             Figure 11: Influences of promotion on consumer




NOWSHAD MOURIN SHAWON                     L0044SZSZ1010                               Page 34
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).


                   60.00%

                   50.00%

                   40.00%

                   30.00%

                   20.00%

                   10.00%

                    0.00%
                               In store       Simplicity      Lifestyle         Others
                                Model
                               Strategy
                 Percentage    58.20%          42.90%          27.50%            2%


                              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).




NOWSHAD MOURIN SHAWON                      L0044SZSZ1010                                 Page 35
                 100.00%
                  80.00%
                  60.00%
                  40.00%
                  20.00%
                   0.00%
                            Promot Brand Adverti In store In store Other
                             ional Image sement decorat Model
                             sales                  ion
                            26.40% 80.20% 5.50% 20.90% 44.00%       1%


                            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.




                  50.00%
                  40.00%
                  30.00%
                  20.00%
                  10.00%
                   0.00%
                             Strongl       Agree        Neither       Disagre    Strongl
                             y Agree                     Agree           e          y
                                                          nor                    Disagre
                                                        Desagre                     e
                                                           e
               Percentage    46.20%        33.00%       14.30%         3.30%     3.30%



                               Figure 14: Effectiveness of sales promotion


NOWSHAD MOURIN SHAWON                     L0044SZSZ1010                                    Page 36
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.


                                3% 2%

                                                                                Strongly Agree
                         13%
                                                                                Agree
                                                          43%
                                                                                Neither Agree nor
                                                                                Desagree
                                                                                Disagree

                        39%
                                                                                Strongly Disagree




                                  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.

                      Strongly Disagree

                               Disagree

             Neither Agree nor Desagree

                                  Agree

                         Strongly Agree

                                          0.00%     10.00%       20.00%     30.00%     40.00%     50.00%
                                                                 Neither
                               Strongly                                                     Strongly
                                                  Agree         Agree nor     Disagree
                                Agree                                                       Disagree
                                                                Desagree
                 Percentage    40.70%         38.50%             14.30%        3.30%            3.30%


                       Figure 16: Customers Thinking About promotional strategies




NOWSHAD MOURIN SHAWON                      L0044SZSZ1010                                                Page 37
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?


                  60.00%

                  50.00%

                  40.00%

                  30.00%

                  20.00%

                  10.00%

                   0.00%
                              Five         Four         Three           Two     One
                Percentage   56.00%       28.60%       12.10%          2.20%   1.10%


                                      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:




NOWSHAD MOURIN SHAWON                     L0044SZSZ1010                                Page 38
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.




NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                   Page 39
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.’’

NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                  Page 40
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).




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                   Page 41
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




NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                                  Page 42
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



NOWSHAD MOURIN SHAWON                     L0044SZSZ1010                                      Page 43
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.




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 44
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.



NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 45
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.




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 46
       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.



NOWSHAD MOURIN SHAWON                    L0044SZSZ1010                                     Page 47
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:

NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                    Page 48
   •   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,


NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 49
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.




NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                    Page 50
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NOWSHAD MOURIN SHAWON                L0044SZSZ1010                                 Page 51
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NOWSHAD MOURIN SHAWON                 L0044SZSZ1010                                   Page 54
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)




NOWSHAD MOURIN SHAWON              L0044SZSZ1010              Page 55
  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:
                                                  Yes            No    Maybe
     Do you like Hollister’s
     In store decoration?                              O        O      O
     Do you think in store
     model is an effective strategy?
                                                  //O          //O    //O
     Do you think Hollister should
     increase TV advertisement?

     Should Hollister start sponsoring            //O          //O    //O
     in the events to increase publicity?

     Do you think Hollister should
     increase sales promotion?                    //O          //O    //O

     When you see Hollister’s promotion
     does that influence you to go to
     the store and buy products?
                                                  //O          //O    //O



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

          In store model

          Simplicity

          Lifestyle

      Other (Please Specify)



NOWSHAD MOURIN SHAWON                  L0044SZSZ1010                        Page 56
    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         Neither         Disagree    Strongly
                                 agree                          agree nor                   disagree
                                                                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




NOWSHAD MOURIN SHAWON                           L0044SZSZ1010                                 Page 57
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


NOWSHAD MOURIN SHAWON                   L0044SZSZ1010                                      Page 58
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?




NOWSHAD MOURIN SHAWON           L0044SZSZ1010                             Page 59
Appendix 4:

Discount card for customer (Sales promotion):




NOWSHAD MOURIN SHAWON           L0044SZSZ1010   Page 60

				
DOCUMENT INFO
Description: Undergraduate students who are doing research in marketing can get help from this research
Nowshad Shawon Nowshad Shawon
About Education: MBA in international Business (Anglia Ruskin University