Times
THE TIMES 100
Edition 14
ASOS: The product lifecycle and online fashion Answer sheet Questions 1. What does ASOS stand for? As seen on screen. 2. What does ASOS sell? Own label and branded and fashion goods. 3. How many packages did ASOS send out to its customers each week? 70000 packages are sent out each week to its online customers. 4. Using the case study, explain how the Product life cycle works. The product lifecycle has a number of stages, research and development, introduction, growth; maturity and decline. With ASOS being an international company, this means that its products can be sold continuously all year round as there are different seasons worldwide. E.g. in the UK it is winter, whereas in Australia it would be summer. Hence products lifecycle will be extended due to the all round selling opportunities for all of its products. Also as it is a warehouse based business, space is not an issue, unlike high street shops and therefore can make stock available to all customers all year round e.g. UGG boots which are considered a winter product but are now worn all year round. Introduction stage from the catwalk, ASOS adopt the new item which is then promoted heavily on its website and to its customers through its emails. Growth ASOS ensures that it has enough stock to meet demand as not to disappoint its customers the promotion is done through newspapers and magazines which creates demand on the ASOS website for the products. Maturity ASOS will remind the customers that the stock is online through its emails and which will usually prompt repeat orders. Saturation at this point sales are gradually falling and ASOS will look at clearing that range of products through price cuts and bargain bins. Decline the product has been replaced by new products, however there may still be a few sales elsewhere in the world where time lags in fashion are evident. 5. How could ASOS use the product life cycle to its advantage? It can maximise its sales all year round and
Edition 14
ASOS: The product lifecycle and online fashion Answer sheet Questions 1. What does ASOS stand for? As seen on screen. 2. What does ASOS sell? Own label and branded and fashion goods. 3. How many packages did ASOS send out to its customers each week? 70000 packages are sent out each week to its online customers. 4. Using the case study, explain how the Product life cycle works. The product lifecycle has a number of stages, research and development, introduction, growth; maturity and decline. With ASOS being an international company, this means that its products can be sold continuously all year round as there are different seasons worldwide. E.g. in the UK it is winter, whereas in Australia it would be summer. Hence products lifecycle will be extended due to the all round selling opportunities for all of its products. Also as it is a warehouse based business, space is not an issue, unlike high street shops and therefore can make stock available to all customers all year round e.g. UGG boots which are considered a winter product but are now worn all year round. Introduction stage from the catwalk, ASOS adopt the new item which is then promoted heavily on its website and to its customers through its emails. Growth ASOS ensures that it has enough stock to meet demand as not to disappoint its customers the promotion is done through newspapers and magazines which creates demand on the ASOS website for the products. Maturity ASOS will remind the customers that the stock is online through its emails and which will usually prompt repeat orders. Saturation at this point sales are gradually falling and ASOS will look at clearing that range of products through price cuts and bargain bins. Decline the product has been replaced by new products, however there may still be a few sales elsewhere in the world where time lags in fashion are evident. 5. How could ASOS use the product life cycle to its advantage? It can maximise its sales all year round and