The Cotton On is clarified by Hitt, Ireland, and Hoskisson, (2012), as an Australian retail store that deals in the provision of fashion clothing for men, women and kids wears. The Cotton On has various retail outlets in different countries across the world with an employee population of approximately 20,000 both locally and internationally. Under the leadership of Peter Johnson as the chief executive officer and Michael Hardwick as the finance officer, the Cotton On was established in Nigel Austin in Geelong, Australia 1991 , but has since grown to be one of the worlds’ dominant value fashion retailer (Hitt, Ireland and Hoskisson, 2012). Having been in operation for over 23 years, the company has maintained an idea that matches with a fierce to bring employees and customers back to life. Moreover, the company utilizes a merchandise planning systems that are mainly characterized by horizontal division of labor to control its production process. Ultimately, the company has since made a recommendable improvement on its competitive advantage after the collapse of Rana Plaza in India that hosted some of the major rivals.

Pricing Strategy of COTTON ON Retail Store

Cotton On employs one of the most exciting and nervous wrecking strategies to determine the cost of its products. Since pricing is perceived by Cotton On both as a science and an art, the company employs penetration marketing strategy right from the begging when the first store was launched in Wisma (Hitt, Ireland and Hoskisson, 2012). Such a pricing strategy was incorporated by the company to cater for the cost of the design and advertisement of newly launched products either online, physically or with the aid of print media. However, with the rising popularity in products, the company increased the unit cost of its products to become more compatible to merchandise costs, as well as the cost of research and development. In addition, the company uses bundled pricing by attracting customers to purchase in larger quantities so as to reduce the cost of purchase for greater profit margins. Eventually, the company uses promotional pricing by setting out promotional pricing during special promotional weeks and holidays. Such promotions enable the company to get a higher sales volume that translates into bigger huge profit margins within a limited period (Hitt, Ireland and Hoskisson, 2012).

Promotional Strategy of COTTON ON Retail Store

In order to improve sales of its products and services, the Cotton On company employs numerous promotional strategies to enhance sales volume and to bring up a more competitive advantage (Musso and Druica, 2014). Some of the promotional strategies that have been employed by the company include Merchandise approach, Introduction of new arrivals and use of positive body language by employees.

Through merchandise greeting approach, the Cotton On staffs have been trained to approach customers who have shown interest in some of the products by greeting them and utilizing such an opportunity tell the benefits of the product in an attempt to persuade the customer to place an order (Musso and Druica, 2014). The approach has been used most effectively on customers who are interested in a particular color, price or quality. Besides, the company uses Introduction of new arrivals approach by focusing on latest fashion and modern wares to attract customers and maintain their loyalty into buying of the organizational products. Ultimately, the Cotton On believes in positive body language approach as one of the best ways of showing of good relations with customers. Through positive body language, the Cotton On staffs have been trained to maintain eye contact with customers, make use of handshakes and a formative movements to attract them into buying products (Musso and Druica, 2014).

Reference list:

Hitt, M., Ireland, R and Hoskisson, R. (2012). Strategic Management Cases: Competitiveness     and Globalization. Cengage Learning. Pub.

Musso, F., and Druica, E. (2014). Handbook of research on retailer-consumer relationship   development. Hershey, Pub.

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