Chapter 7: Business Marketing

Every business must have some type of starting point. Retailers in particular always have somewhere they must purchase their materials from in order for them to be able to create let alone sell the products they are offering. G-Star forms its clothing from strictly raw materials that are recycled for environment purposes. Although G-Star does not reveal where they receive their products from (which is a wise business tactic) they make sure that the consumers are aware of the fact that they do not constantly purchase a brand new set of materials all the time instead they use materials like recycled cotton. Or even in the case where its not recycled it would be something such as organic cotton. Although it hasn't been much I have somewhat seen a bit of re-intermediation when it comes to the G-Star brand. Retail department stores such as Century 21 have carried G-Star merchandise whether or not it may have been a scarce amount is not really the concern. The simple fact that consumers are able to get the product somewhere other than the store is a good start. Being that the G-Star Raw brand has been around since 1989 I am more than sure that after decades later trust is not even a worth a debate as far as the relationship between G-Star and its material providers goes. I'm sure that the creation and modification of G-Star's products may take much effort which will constantly demand the need for new supplies. Therefore it is safe to say being that G-Star knows what works best in the development of their products the most they will do is a modified re-buy when it comes to the purchase of a needed supply. 

Chapter 8: Segmenting and Targeting Markets

Market segmentation is a huge part of the marketing industry. Alongside such an important topic is the idea of which markets one will be targeting which goes hand in hand with the idea of segmentation. G-Star has a market segment which is still growing for the simple fact that many are attracted to the brand due to its style of clothing and production methods. Within G-Star's market segment there are those who are into the fashionable yet edgy look and then the many others who take an interest in recycling and are automatically drawn to ecologically friendly products. Although G-Star does have some stores outside of the United  States it is not big on the concept of geographic segmentation, instead they are more in the depths of demographic and  psycho-graphic segmentation. The demographics of their current targets come to usually be middle - upper class consumers who usually range from their late teenage years to their early thirties. There is no specified gender for the simple fact that G-Star produces products for both male and females. Also ethnicity does not come into play because there are G-Star raw stores in many places of diverse ethnicity. As far as the psychologically aspect of segmentation goes G-Star is ideal for those who enjoy having an edgy yet fashionable look. Also for those who are very concerned about the environment and refuse to purchase from a majority of brands, G-Star not only recycles but tends to use man organic raw materials in the creation of their products. G-Star is well acknowledge in apparel position for all of its consumers. 

Chapter 11: Developing and Managing Products

Just to start off the discussion of product management and development G-Star always stands by their catch phrase "just the product". The meaning behind this phrase is that the goal for majority of G-Star products is to not be to extra on the detail but to fit the appeal of those who are heavy on style. For example, you could possibly find a shirt from G-Star with an abnormal font but not something so crazy as to there being a giant design on the front and back of the shirt. G-Star is not too big on the release of new products but they are always performing some form of innovations to even their smallest of products. One example of an innovation is the constant alteration of the raw materials they use for the creations of their products. One day while shopping at G-Star I remember buying two shirts of similar design but the material of each made so much of a difference I felt as though I had to leave with both. One was an organic cotton material that was very breathable and actually pretty loose. The other was more a closely fitted shirt although I do not remember the proper name for the material I am sure it is not organic cotton. Along with the differentiation in the materials of the shirts they both have a different look on me when I wear them. One looks much more relaxed while the other appears to be more of a fashion based look. When it comes product strategy two main things that G-Star must focus on are; "what makes the product different from its predecessor" and "is it eco-friendly"? 

Upon generating the idea of what the product looks like developers must always keep the concept of "just the product" in mind solely because that is a code in which G-Star develops everything it sells. During screening products must be checked for comfort, material strength and usage time frame. By usage time frame I mean how long the product itself will last before it begins to decline. G-Star is still in its growth process of the product life cycle. They are constantly modifying their products and in addition to such are always attracting new loyal customers at an increasing rate. G-Star does not really promote test marketing where they have a trial run of a product but what I have noticed is that they often make larger amounts of the merchandise that sells faster just as any other retailer would do. 

Chapter 16: Promotional Planning For a Competitive Advantage

Promotion is a huge part of any retail industries customer attraction. Although every retailer may promote in different ways the objective of all forms of promotion in the long run is to bring about some form of profit. When it comes to G-Star Raw and their methods of promotion they use some elements of their competitive advantage by comparing their usage of raw materials to that of other companies. Some products that G-Star uses in the development of their products include organic cotton alongside other recycled materials. As far as communication is concerned there are certain aspects in which G-Star can improve the way they reach out to those who are not as familiar with the brand. One way would be to have more eye catching posters because the ones they have are usually in plain color sets such as "black and white" or "navy and grey". Those color schemes don't really pop as much so a person wouldn't really notice and also being that the style is very edgy as opposed to a loud fashion look a person wouldn't catch on that its a clothing brand poster. Some of their posters look like those that are for movies which is why most people would walk past them. But for those who actually do notice the promotional methods of the G-Star brand they always have good feedback upon entering the store or even looking at the website. 

G-Star actually appears to be better at interpersonal communication in my opinion solely based off of the fact that the sales representatives in the store give you better explanations of products and what they can do for you than the website or a poster can provide. With the external forms of promotion you enter the store with a pure curiosity but once you leave the store whether you make a purchase are not its more than likely your familiar with many aspects of the brand . One of G-Star's stronger promotional aspects are their newspaper ads. From the very beginning it is a good start just because many people read the newspaper. Also newspapers are a great source of publicity for anyone because people are always interested in current events. As for G-Star's display of the "AIDA" concept there are some things that could definitely be improved but every brand has their faults. When it comes to personal selling I can admit that G-Star does amazingly well as a brand on that aspect. When you walk into the store just by having a conversation with the employees pertaining to the brand and any of its products you feel as though you want to purchase something before you leave just for the "RAW" experience. 

Chapter 10: Product Concepts

 When it comes to production G-Star is a very strong brand when that aspect comes into play. Many retailers offer clothing and accessories in their product mix just like G-Star does which is why their stock is completely classified as shopping products. Their products come to be more expensive than many other stores but for the simple fact that people love not only the design but the feel of G-Star Raw and its clothing they are willing to give up extra money to attain such a product. One thing that constantly puts G-Star ahead as far as their products are concerned is their product modification. Some of their denim may come to be hard denim with a strong material while others appear not as heavy with a lighter color scheme to it. Also they have t-shirts made of organic cotton, polyester and both leather and cotton winter coats. As I am sure you have noticed by now the name of this brand is "G-Star Raw" and as noticed on the images of many products the single letter "G" with its unique shape is the mark used by the brand. Unlike certain brands the only place in which you would probably be able to buy G-Star brand clothing besides their stores would have to be amazon or e-bay for the most part. 

The fact that there are many consumers who take time to go the G-Star Raw store locations to purchase their specific products shows a great deal of brand loyalty. G-Star uses family branding in the way that they offer man things such as belts, hats, jackets, t-shirts and underwear alongside many other products all with the G-Star brand name. Usually G-Star clothing does not use a specified packaging except for the bags you receive at the point of purchase which are actually ecologically friendly and re-usable. All labels of the G-Star brand have the oddly shaped "G" somewhere to dignify its authenticity. When warranties come into play the warranty offered by G-Star upon all of its purchases are is actually a 6 month return policy. Although the item must be unworn and include all original tags the amount of leeway given for a consumer to return their product without he common situation of not being able to return it in time is a great asset to the policy. 

Chapter 18: Sales Promotion and Personal Selling

G-Star Raw is a brand that doesn't usually do many out of store sales promotion. What I mean by that is basically if you are not in the store there is a high chance that you will be unaware as to weather they have items that are on sale or not. This works in a negative way for them because it actually may defeat a chance of them bringing in a potential customer. G-Star sometimes has prices on items that are so high that people actually may be sitting and waiting for a sales promotion so they could immediately enter the store but if they are not informed of when they will never be around to actually make such a purchase. As for the signs that do appear out of store they tend to actually be dull and are not eye catchers. They instead put the more noticeable signs in the windows of the stores such as the one in the top left of this blog. They do demonstrate consumer sales promotion in the way that a large percentage of the deals are worth while. G-Star offers deals such as buy two shirts and second one you would get 20% off or even just an entire sale rack of worthwhile merchandise. The loyalty marketing program is implemented by G-Star where they offer customers to receive constant emails as to what is going on within the branch concerning sales, new stock and other things of that nature. G-Star is a brand that I can definitely say heavily relies on personal selling. I say this because you don't really see or hear many advertisements for the brand but once you walk into the store the representatives can make you feel as though you need to leave with something. They provide you with as much information as possible from the material of the shirt to the season it was created. My only negative reaction to their sales associate is that I feel as though they only want you to make a purchase but don't fully find it in their personal interests to make the customer satisfied they just go for the sale. Also I find that they only attempt to build a relationship with you when you appear to be a regular customer as opposed to developing a relationship which could possibly result in such an ordeal. 

Chapter 17: Advertising and Public Relations

G-Star has various elements to its advertising which help build towards the indefinite progression of the brand. Also G-Star is actually way past the point of building sales/share they have been at the maintenance point for quite a while now. Institutional advertising is a method in which G-Star commonly uses. They promote the fashionable yet edgy look for those who find that method of dressing appealing as opposed to promoting their denim which is actually their strongest product. Although from time to time you may see a bit of product advertising in the winter or spring with G-Star's denim at bus stops or in Fashion Magazines. During product advertisement G-Star uses advertising appeal where they make a quick statement which distinguishes the quality of their denim from other hard denim brands. The fact that their actual positions which specialize in the marketing aspect of G-Star Raw is what also helps to broaden its promotion. Things such as "creative planner" and "fashion coordinator" help to develop an appealing image to the public. The manikins which reside in the store windows are an excellent source of upfront advertisement so long as the manikin is indefinitely presentable and fashionably uplifting. Generation Y is a group who will actually often be attracted by these various forms of advertising, simply for the fact that this generation has the most diverse sense of fashion. Also they have a constant trial and error behavior where they are always trying out new things. Although G-Star already has a specified target market their forms of advertisement could possible sway or influence an alternate customer into trying the product. Things like that can result in a wonderful consumer relationship. 

Chapter 15: Retailing

During a previous retail visit I noticed many things that actually showed me the difference between G-Star and other retail brands. One comparison is between G-Star and the Billionaire Boys Club(BBC) store in SoHo (New York). BBC is an independent retailer owned by Pharrell Williams who is a very well respected hip hop artist. That specific G-Star store was actually one of the many chain stores. G-Star can indefinitely because classified as a specialty store due to the fact that they have the most reliable denim as opposed to many other retailers. Although both have methods of direct response marketing G-Star has come to be more reliable being that BBC often has many goods that are sold out on there website so it actually has an effect on the amount of customers who shop online because people will always shop with the most reliable retailer. But as far as customer service goes i can say that G-Star wins that off the back solely because in BBC help is not automatically offered at all times you have to actually request many things as opposed to when you are shopping in G-Star and help is immediately offered to you. But being that BBC is a the only one in Manhattan it easily becomes a destination store unlike G-Star. G-Star has a much better retailing mix and also edges the competition of product offering too. 

Chapter 6: Consumer Decision Making

What is so appealing to customers when it comes to G-Star Raw and their products? One major reason is that as weird as it may seem G-Star Raw denim jeans don't need to be washed instead they actually can be aired or even frozen. In worst case scenarios one can bring them to the Dry Cleaners at most but only if they are being cleaned for the first time. The reason given was that G-Star Raw jeans are dyed, cut and sewn a certain way, such that washing them would alter their appearance. G-Star Raw Denim is designed to exactly mimic the comfort and look of a worn-in pair, demands just that kind of offbeat care. The fact that it does not really take intense care and is an indefinitely reliable product is what actually makes consumers continuously return to purchase the product. Therefore not only has customer satisfaction been obtained but the consumer decision making process has also been completed. 

Chapter 5: Developing a Global Vision

One of G-Star Raw's expansion methods also consisted of them opening a store in Australia. Nick and Candice Hirons are the two people who operate G-Star Raw Concepts stores within Australia. They initially became  involved with the G-Star brand 13 years ago preceding them selling the label through their multibrand 'D. inc' boutiques in Melbourne. They opened up a G-Star Mono brand store in Melbourne Central as a result of their passion for the brand itself in the year of 2003. Another major location of the G-Star Raw brand is their Hong Kong location, representing G-Star's largerst flagship store up to date this humongous retail space with two floors, LCD wall that reaches fromt he floor to the ceiling and a custom design dressing area. G-Star also offers online access to places such as Australia, Austria, Belgium, Denmark, Estonia, Finland, France and Germany just to name a few of them. As for the quality of its clothing, G-Star distributes the same quality of clothing to all of its branches. All of its products remain environmentally friendly and of course their denim is the primary focus in all of their branches.There has been a great economic growth in all of their locations and G-Star continues to provide its target market with what is needed to maintain customer satisfaction. All these branches have done well and with that being the case G-Star has already begun to concentrate on opening up more locations in specific areas. 

Chapter 4: The External Marketing Environment

In the November of the year 2010 G-Star opened up three stores. One of the stores was opened in Phoenix, Arizona while the other two debuted in Santa Monica and San Francisco which are in California. Thanks to its authentic cutting edge style, G-Star RAW has established itself as a distinguished brand in the denim market in 19 major countries worldwide, currently occupying 35 offices and over 100 showrooms. The use of raw denim materials has given the brand its unique look, offering denim in its purest form to true jeans fanatics. This sense of rough and pure is not only present in the collections but it is also recreated in each store’s atmosphere. G-Star’s team of interior designers have focused on enhancing the shopping experience by creating environments with natural and raw materials that match the label’s philosophy.

From product development to advertising, innovation is the company’s main feature. Denim specialists constantly come up with new designs that perfectly juxtapose street and luxury, while marketing and graphics teams develop innovative forms of communication and promotional activity around the brand. With 876 employees of many different nationalities and 6,300 points of sale in 65 countries, G-Star’s international appeal is clear. As global demand for the brand continues to grow, the company continues to open more stores in major cities, and three openings in the same month show just how confident they are in their results.

One of G -Star's biggest store location debut's was actually the development of their Shanghai location. Although G-Star has a mass network of stores across the globe totaling at about 6,000 boutiques globally, this particular opening appeared to be of a much greater significance for the brand as a whole. Though the Dutch brand has stores in Shanghai, this city-centre address is the brand’s largest store to date. The store measures 8,000 square foot over two levels and carries both men’s and women’s wear. The boutique features a jeans wall measuring 11 metres tall and a 250 square foot area dedicated to the brand’s shoes. 

Chapter 3: Ethics and Social Responsibility

Alongside its amazing products and very large fan base, G-Star Raw has a vast amount of key values from which are derived from their code of ethics and their moral standings. G-Star is committed to producing high quality and ethically manufactured products at a good value to its consumers. The G-Star supplier code of conduct outlines G-Star's Expectations   regarding the conditions under which its products should be manufactured. G-Star's commitment is to only do business with suppliers that share its commitment to fair and safe labor practices and observe environmental conscious practices in the locations where they operate. This code of conduct applies to all suppliers and/or sub-contractors providing products to G-Star Raw or any of its affiliated companies. This particular code of conduct both clarifies and elevates the expectations they have of suppliers they work with and lays down the minimum social and environmental standards they expect each factory to meet. The supplier is responsible to ensure that this Supplier Code of Conduct is implemented and adhered to by its sub- contractors and business partners. 

It is their intention to only work with suppliers that share their values. G-Star does not wish to work with any suppliers that directly or indirectly through its (approved) sub-contractors or business partners, violates the laws of countries where the products are manufactured or knowingly violates these standards. G-Star will take immediate and appropriate action upon notification of such violation. G-Star commonly encourages open communication between workers and management in order for workers to be able to voice their comments and concerns while respecting the right of employees to associate, organize and bargain collectively. Suppliers must provide a safe and hygienic working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of suppliers’ facilities. Suppliers must provide a safe and hygienic working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of suppliers’ facilities. Workers shall receive regular and recorded health and safety training, and such training shall be repeated for new or reassigned workers. Factories must only employ workers who meet the applicable minimum legal age requirement or at least 15 years of age, whichever is greater, or as an exception, 14 years in countries covered by article 2.4 of the ILO Convention 138. 

G-Star Environmental Standards 

A. Commitment and Responsibility 

• Each Supplier must have a written declaration stating the importance of care for the environment signed by the director.
• Supplier must have formally assigned the responsibility for environmental performance to a member of the management team and/or board member. 
• Supplier should have a form stating the functions, responsibilities and names with regard to environmental issues. 

B. Energy Usage

• Supplier must record energy usage (including electricity, gas, fuel use, and if applicable steam and compressed air) and monitor trends in energy usage against the output (for example number of products and/or the kgs of material processed).
• Supplier should set targets to reduce energy usage per unit of output.
• Supplier should investigate opportunities to use renewable energy (such as solar, wind turbines, geothermals, hydroelectric energy, or energy from biomass).
• Investigate opportunities to implement of best practice technologies for energy use and reuse. 

C. Use of Raw Materials 

• Supplier should keep records of the mainstream amount of raw materials used (covering approximately 80% of their total purchasing).
• Supplier should monitor the usage of raw materials per unit of output.
• Investigate the possibilities of reducing the amounts of raw materials used.
• Investigate the possibilities of using recycled materials as raw material. 

G-Star is a brand that really focuses heavily upon the decreased consumption of materials that can negatively effect the environment. Also one can tell that they are a unified company because of the fact that they only hire people or partner up with individuals with the same views as them. This can be both a positive and negative as far as the effect it can have on the company and its potential production. Some partners may not have the same views as far as the environment is concerned but may have the financial funding to push G-Star high enough to become a high-end retailer. Then again you can see that although that may be the case G-Star Raw stands strongly by its code of ethics and refuses to associate with those who are not concerned with the environment.

Strategic Planning For a Competitive Advantage

 The mission statement of G-Star Raw is remain a forward looking company that wants to continue making iconic products in the future. G-Star acknowledges the need to look into sustainable solutions. They feel as though they will only be a successful company so long as they create their products with minimal environmental impact. Which leads into their careful consideration of the materials used for their products. G-Star States "we can make a big move towards minimizing the environmental impact of our products that contribute to a more sustainable future without compromising on equality, comfort and design. Consequently we aim to gradually increase the use of sustainable materials in our collection.

The strengths of G-Star Raw as a brand are primarily the simple yet edgy look it gives off to the public. Another is the fact that G-Star takes on somewhat of an environmentalist approach when it comes to the production of its merchandise. The fact that they carry on somewhat of an army appearance when it comes to there denim attracts more of a variety because people like to see different which can also eventually influence them to buy it. 
One weakness that i noticed the brand has is the lack of support from families that do not have a great income. The brand has followed a differentiated market positioning strategy by focusing on a narrow market segment. The brand refers to the upper end of the middle market by positioning itself as a premium high street brand. As for audience brand has always addressed to the fashion leaders & innovators who can relate to the innovative values of the brand.Therefore families of low income are less likely to purchase G-Star Raw clothing due to its high pricing. 
As far as opportunities are concerned G-Star has set up an portion of the brand in which an employee can set-up his/her own franchise monobrand store with the help of G-Star's full-service Retail Solutions department. The monobrand stores are flagships which present the collection in an environment that conveys the philosophy, design aesthetic and raw authenticity of the G-Star Brand. 
A major threat to the G-Star Brand is the constant creation of fake e-mails that are sent out to random people stating their is a sale and while they pay online to the product their money is actually being paid to a totally different source. One example of a fake email that claimed to have been affiliated with the brand is gstarrawonline@gmail.com. 

G-Star does not have what the business worlds calls a "problem child" of their brand but indefinitely the "star" of their brand is indefinitely their denim products solely because of the fact that most people purchase clothing from G-Star of that material. G-Star's target market is the casual yet fashionable youth. What gives G-Star a competitive advantage is the fact that although they started out to be a totally denim based brand they took diversification approach and began to make T-shirts, hats and belts which led to them actually be known as more of an urban fashion brand. Being that the production was a success it gave them the edge that they were able to experiment with more designs and reach the other portion of their target market that is not a fan of denim products.

 Promotional Strategies that G-Star uses are organizing fashion shows in order to give everybody a chance to experience the brand. Also G-Star offers children and adolescents vocational training concentrating on both knowledge and skills the possibilities to learn a profession and have better chances for the future.  Distribution strategies that G-Star uses are the official website which is G-Star.com or the many store locations in Manhattan and Brooklyn. Also although they may not have designated stores in certain areas there are still retails that sell their product such as Century 21 Department Store and other places of that nature. Pricing Strategy for G-Star is understandable as far as their target market goes but at the same time it heavily disregards other people who are interested in the brand and can't afford it due to is middle class pricing. Of all G-Stars portions of the marketing mix i feel as though their Product Strategy is the most effective. Due to the fact that they use materials that won't have a negative effective on the environment such as recycled cotton, mechanically recycled nylon, organic hemp, organic cotton and mechanically recycled polyester alongside many other  materials. 

G-Star Raw and Its Marketing Philosophy

 G-Star clothing has a very unique approach when it comes to the marketing aspect of their company. A phrase that the entire G-Star Raw company uses as part of their marketing philosophy is "Just The Product". Since the premier of raw denim in the year of 1996, G-Star broadened its concept to create a newer yet edgier image. The image that G-Star promotes can appeal to all styles and ages of the sort. Authentic details and functional attributes are what give the brand a collective and strong sense of identity. The main focus of the entire G-star Denim clothing line derives from their Jeans which is the reasoning as to why innovation and perfection became imperative for such products.