Urban brands and TSG capital group Case Study Help

Urban brands and TSG capital group Case Solution


Business Plan of Urban Brand

Joe Sitt, initiated the business under the name off Urban Brand. The company has 21 stores serving as retailerofethnicclothing. The target market identified by Urban Brand are those women who belong to ethnicbackgrounds, andare facingcomplications or hurdles in finding the extrasizes dueto their different structure.These women are continuously overlooked by other business, hence create a large space in the market to enter with a aggressivestrategy. The target market has moderate incomelevel andan urge to match the fashion running in the market and around their neighborhood. Since no one is serving the customized ethnic clothing offering, the chances of high brand loyalty are eminent for Urban Brand.In anaddition, the company aims to open the new stores in such offering in the place where,its has already acquired certain market share, for example New Jersey.

Issues/Challenges and why they exist:

  • Sitt has a strong family background of serving the market as ethnic cloth manufacturer, but has no experience of retail marketing. Andbecausethis two fieldare different from each other, the lack of market analysis is pertinent barrier, which creates an ambiguous knowledge base about thecustumerbehavior and reactiontoward the brand.
  • The lack of specialty in women Retailing is also pertinentbecausesuchmarket requires additional knowledge of the buying behaviors, preferences and choices, which can only be gained by experiencing the market.
  • The after-effects of Financial crisis are still plunginginto the roots of US economy. Which have still threatened the consumers to spend less and also the disposableincomehas not increased again to spendmoreon clothing.
  • Lack of circumstantial experience of the market which is behaving in abrupt swing on the economic curve due to previouseconomicdownturn and has made the market research complicated in studying the behavior of the Hispanic consumers in the society.


  • Since Sitt has strong vision and understanding of the market, it is planning to serve, and that he is aware of thechallenge that may come across in the way, Thompson, should take a leap of faith by investing into the business. It isbecause, theBUSINstrategyof TSG also incorporates challenges and innovation, thusexperiencing with Urban Brand go along with the business strategy. Also, since Thomson, also feels, that Sitt understands the market deeply and is entering in an untapped market, it will soon gathermaximum market share by taking the first mover advantage. Also, the investment will not go in vain, becausethereis a lot bigposition in the market of ethnic group andhspanians that are being overlooked.Hence the gap in the market will serve both the business in an effective way.
  • Moreover, since the urban brand has already opened 21 stores the market positioning and brand awareness will not be an issue for the company and will enhance the chances of the increase in sales and acceptability among the ethnic
  • Though, Sitt has less experience in the market, yet he knows the pain points of themarket which have identified, and thus can use to build brand value.
  • A big market and gap is present in clothing industry which is hispananian lacks, who are looking to adopt such clothing brand that fits their needs of clothing and desire to fit in the working environment that may lead to successful career growth because of the “lookalike”factor and thuswill reduce the factor of discrimination. The point is strong to invest in the businessbecausethe Hispania markethas potential topurchase and speculates strong brand loyalty.

Action Plan

Short-Term Plan

TSG willinvest a small amount of investment into the business, anamountenough to open one outletand then wait for a yearto see the sale graph and profit margin.The ownership will remainconfinedto the urban brand.Sitt will inform anddiscuss every site with Thompson in boardmeeting to bring him on the same page.

Middle-term plan

The company TSG, will invest about 25% in urban brand, and will initiate to open the 10 stores in New Jersey to increasemarketpenetration and also visibility.The aim of the company will be to meet the profits around 75% of the initial investment.In doing so, various advertisement and media channels will be used to create awareness and brandvalue. Also, the company Urban Brand will interact with theexisting customers to bring about the interest in the new segment. Along with the operations, a strong market survey will be carried to understand and plunge deeply into buyingpatterns and behaviors of the new market segment.......................................

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Posted on June 9, 2017 in Case Solutions

Urban brands and TSG capital group Case Solution

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