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HoMie Company Marketing Strategy


Modern marketing requires a strategic marketing model known as Segmentation, Targeting, and Positioning (STP) for the practice to be complete. The model is focused on consumer marketing rather than the product. STP study enables a marketer to understand the customer, which will be essential in delivering a product as required by different customers, which will drive sales up. The most valuable customers are identified, and products that suit them best are developed (Hajibaba et al., 2019). The fashion and textile industry has customers that need understanding so that they are provided with the apparel they need based on different characteristics that will be discussed in this report. HoMie is one of Australian fashion and textile companies that have been experiencing a decline in its market share. “HoMie is a streetwear clothing social enterprise that uses 100% of its profits to provide new clothing, training, and job opportunities for young people experiencing homelessness or hardship.” As a marketing consultant, the company needs to take some steps to revamp its sales to be the dominating company in Australia and the international market. Based on research, there are areas that the company needs improvement. They include the introduction of plus-size clothing, fast fashion, sustainable fashion, new online fashion business, sports apparel and footwear, and luxury apparel. In line with the new improvements, HoMie needs to implement a Segmentation, Targeting, and Positioning (STP) marketing strategy for the company to increase its market share.

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Segmentation, Targeting, and Positioning


A product cannot satisfy all peoples’ needs; hence, there is a need to group the customers based on their needs and characteristics. After that, a marketer can know how to approach each market segment based on common characteristics and needs. The approach is cost-effective and offers a huge advantage over competitors (Singh and Jain, 2019). Customers are segmented demographically, geographically, psychographic and behavioral characteristics.


Demographically, the Australian population is growing; by the year 2030, the nations’ population will be almost 30 million people from the 2017 estimate of 23232413 people. The median age is 37 years, with a significant number of customers being at a young age, there is much potential while marketing to them. As much as men are more than women, they are almost the same at each age. Therefore, the company should market to both sexes. The employment rates are relatively high at 62%, the highest ever since 2010, Australians have the potential to purchase any product they wish (Foedermayr and Diamantopoulos, 2018).


Geographically, most of the people live in town along the coastline. Inferring to the World Population Review (2019), Sydney leads with a population of 4627345, followed by Melbourne, 4246375, and Brisbane, 2189978 people. Therefore, the company should market its products to residents of the aforementioned cities, specifically the young people up to age 45 years, because they are the ones working in these cities and they have a stable income (Dickson and Ginter, 2018).


Australians are the wealthiest people in the world, with a median wealth of $US 191453 against the United States $US61667. Notably, New Zealand’s median wealth is $US 98613, meaning that HoMie can extend operations to New Zealand as part of its expansion plan. They are potential good clients in luxury apparel. The majority of Australian people are obese; 63%. Therefore, introducing plus size clothing will capture the overweight people who are big. Besides, they would provide a good market for sports apparels when they are doing body exercise while maintaining their sense of style (Gomez et al., 2018)


In a report by Hunt and Arnett (2016), Australians are not loyal to any brand; while doing their shopping, price is the driving factor. Marketers are challenged to maintain brand loyalty with a focus on value and quality. Consequentially, HoMie Company needs to concentrate on improving its product quality and make the prices competitive to increase brand loyalty in the market. Resultantly, the customer base will continue to grow, not forgetting that product price determines the market share to be acquired—the lower the price as compared to competitors, the higher the market share. Beane and Ennis (2017) further state that 65% of people try products with discounts. Hence, the company should consider providing discounts on product prices.


Market targeting evaluates a segment’s attractiveness to arrive at one or more segments to venture. Targeting is the basis used to identify the segment that is likely to be the most profitable. Some of the factors to be put into consideration while analyzing the target customers is the profitability of each segment (Camilleri, 2017). Growth potential, segment size, and how the company will meet the target market demands. The most feasible target market is people living in the three cities, Sydney, Melbourne, and Brisbane, specifically up to the age of 45 years. They are the most profitable ones because they are working and have a stable income. On average, the weekly average wage in Australia is $1567.90, which is enough to spend on their clothing (Perdue, 2016). When considering the target market, Return on Investment (ROI) is the best rationale to identify the ideal target market because the higher the ROI, the higher the profitability. With the main target customers being the young people in the three major cities, there is much growth potential. Additionally, these cities have many tourists who are also potential customers. Setting HoMie stores in Sydney, Melbourne, and Brisbane will drive the market share up, which will also increase the company’s profitability.

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Considering that people up to the age of 45 years are relatively young, they have a sense of fashion. Therefore, they need fast fashion, which requires the release of the latest design and continuous making of new designs. At the same time, the company should ensure that the fashion apparel released is sustainable to avoid the continuous release of new products as it will attract more marketing costs. People in this age bracket have adopted modern technology; therefore, they are online shoppers. HoMie company has to consider having an online store where customers can order goods at their convenience (Aghdaie and Alimardani, 2015). Besides, providing discounts to this population will increase the product’s popularity considering that they are people still growing with much savings for old age. They also have families that need to be clothed at an affordable cost. For them, the value of their money is all that matters, and receiving the required utility.

Comparing men and women, women are more shoppers than men. HoMie needs to consider increasing female products to exceed male apparel. Consequentially, the stock will be moving at a faster rate than when men’s apparel is more in the product mix. In a study by Dibb and Simkin (2017), women are designed to be better shoppers than men because of their ability to navigate shops with the patience needed to make shopping decisions. Additionally, women accompany their children to make purchases for their families. Therefore, the company ought to target women majorly due to their attractiveness and their ability to drive sales high (Dibb and Simkin, 2017).

The fashion and textile industry has many opportunities in Australia. With an increased number of immigrants, who are mainly young people, they are going to increase the company’s customer base. Comparing the years 2016-2017 and 2006-2007, there has been an annual increase in immigrants’ numbers from 232800 to 262490. The majority of these people are young people studying in Australia, while others are in the country to work (Camilleri, 2017). They create an opportunity for the fashion industry market to expand, which is an opportunity for HoMie.


At this point, positioning the product in the market is essential in an effort to capture more customers who will increase the market share, especially in the most valuable customer segment; young people. It necessitates a company to select a marketing mix that will capture the majority of them (Charles et al., 2015). HoMie needs to determine why customers need their products. The company dwells in the uniqueness of the product; therefore, it is a good starting point while defining a positioning. Fashion and textile apparel from the company becomes competitive because it is unique. However, other companies are coming up with unique products, which have led to a competition increase resulting in a decline in the market share. The challenge the company is facing at the moment is that customers take the product to be a luxury because other companies are offering fashion apparel at a lower price (Iyer et al., 2019). HoMie should consider lowering its prices for it to be competitive as compared to other competing companies. That will ensure that the company gains a competitive advantage considering that Australian customers are more responsive to lower prices while doing their shopping.

For a long time in the fashion industry, there has been a perception that being slim is attractive. It has led to players in the industry concentrating on producing clothes for lean people. However, there is an upcoming trend that even the plus-size people are modeling. Consequentially, more people are accepting their body size (Saqib, 2020). Considering the high number of overweight people, putting a product in the market that can fit their body size will increase the company’s sales. The company should make sure that there is a variety of clothes and other fashion-related apparel in the market to make sure that customers have a variety to choose from (Giannias, 2019).

The Marketing Mix


Londhe (2014) states that customers want and expect diversity within products, and in this light, duplication in a fashion strategy spells doom for the business. HoMie product’s adhere and suit to realistic expectations. That does not mean a weak product but rather products that challenge the economic assumptions that fashion design and products that are within budget and meets the client expectations while promoting the business. HoMie is a slang name that means a close friend. The brand name and logo appears in branded products using a small but visible font.


The price strategy of a new business must be comparable and, if need be, adjustable to the competition. The business has a three-option price strategy with competition adherence. The first option is to fit the clientele who, due to various factors, are classified in the low to the middle-income group. The pricing in this group has to be relative with a clear set adaptation to specialization. The price will be set in accordance with what exactly the client wants while taking into account competition and profit margins (Thabit and Raewf, 2018). The second option is for wealthy local customers whose needs are actual residents in rural areas. The requirements and wants of this second group are at the higher end, which must be reflected in the pricing, which will equate to the value of the service being given. The third option is for clients in urban areas who choose a rural location for these functions. The price ranges are different, and so is the product. Pricing of a product should be edged on competitiveness. Nevertheless, the client’s expectations and values need to be seen as the target for which prices should be set. The value of a product is seen through the visual aspect of different people, and the pricing affects the aspect. By developing a three method tier of pricing, HoMie hopes to accommodate all customers while maintaining profitability. The discount aspect will be offered as per customer due to the varied nature of the business. The prize package will include the payment period, seasonal allowance, geographical areas, cash versus discount payments, and credit terminology of payments.

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Badi (2018) observes that any promotional efforts need to have a clear, precise message to reach the target audience while utilizing appropriate channels. The message in any advertisement kit should be relevant to the company while eliciting a response from the target audience. HoMie Company utilizes the use of an online presence with print media as its first line of promoting the business. The company, after establishment, also relied on the referral as the rural setting relies heavily on word of mouth as a promotion tactic. The company utilizes parades, social gatherings, and churches to promote its products in the countryside. The satellite office will use billboards for advertisement purposes. The competition utilizes billboards and referrals, which are also be employed by HoMie.


The company utilizes direct sales, which involve face-to-face meetings with customers. HoMie Company will be based in the low-income areas and streets that competitor businesses consider not very prime, and the charges will be a reflection of the location and clientele. The company will have an office cum storage area for client show wish to view the equipment in person (Harvey et al., 2016). The office will be located in the local town center with an online presence for customers who are situated far from the town. The company’s satellite office will be catering to urban customers.

Relationship marketing strategy

This is a strategy that is developed to foster customer loyalty, interactions, and long-term engagements. As a result, the strategy offers clients product information that is customized, providing them with purchase guides that suit their individual needs. HoMie uses several marketing strategies in this regard, including email marketing, socio media marketing, and brand ambassadors such as celebrities (Hanley and Leahy, 2018). In email marketing, HoMie draft a customized message based on the customer buying behavior and patterns. Different products are displayed as images in social media marketing while others are already wearing them. Celebrities who have great social media influence are also used to promote HoMie products, especially those who support the social responsibilities carried out by HoMie.

The company’s product will be unique in relation to the event, and customization will be the key to the right product deliverance. The pricing strategy will be three tiers to cater to the rural setting, with direct sales being utilized as the key distribution channel. The company will use various promotional strategies such as churches, social media, and referrals to advertise its products.

Recommendations on how HoMie can improve its marketing strategy

HoMie needs to have a marketing mix that will maximize customer reach. The company needs to set 30% of its total revenue on advertising and marketing. With the recent rise of social media influencers, the company should use such people above any other marketing tool. The majority of social media influencers are young people who have a profound influence on their peers. The young people adopt what they see. Since the social media influencers will be dressed in various designs from the company, the young people will flock to the company’s stores in Sydney, Melbourne, and Brisbane. It is a cost-effective form of advertising as it is cheaper as compared to other forms of advertising such as TV, radio, billboard advertisements. Consequentially, the form will save costs, which will increase profitability. These social media influencers also have the potential to reach more customers in the market. However, HoMie should employ other forms of advertisements such as billboards, TV, radio at a lower rate. Specifically, the adverts should inform the customers of the various discounts that they should expect the location where the products can be found and inform them of the online shopping option. Consequentially, the customer base will increase, leading to an increase in the market share.


Through the Segmentation, Targeting, and Positioning (STP) marketing strategy, HoMie does not need to worry about the decline in the market base as it will increase significantly. However, the company needs to understand its market segmentation to comprehend how to approach more clients. The first step understands population demographics and distribution. Followed by customers’ geographic distribution to device means to reach them. Then, customers’ psychographic and behavioral characteristics to enable the provision of products that fulfill the clients’ needs. Thereafter, the young people; below 45 years will be the target market, especially those in Melbourne, Sydney, and Brisbane. Finally, the marketing strategy will be positioned to attract the target market through the use of social media influencers to help in marketing. With that, HoMie will see an increase in its customer base, leading to a rise in market share with reduced competition.


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