To determine the demand for sustainable clothing and understand customer expectations, the retailer could use the following market research methods:

1. Secondary Research: The retailer could analyse existing market reports, industry publications, and competitor data to assess the current demand for sustainable clothing and identify trends. This would provide a general overview of the market size and potential.
2. Questionnaires (Online/Social Media): A questionnaire could be designed to gauge customer interest in sustainable clothing, asking about their willingness to pay, preferred materials, and desired styles. Social media polls and surveys can also be effective.
3. Competitor Analysis: Examining the sustainable clothing ranges offered by competitors can reveal popular features, price points, and customer reviews. This helps identify gaps in the market and potential opportunities.
4. Focus Groups: Organising focus groups with potential customers allows for in-depth discussions about their attitudes towards sustainability, their perceptions of different materials, and their expectations for the new clothing range.

The data gathered from these methods would help the retailer understand the level of demand, identify key features customers desire (e.g., organic cotton, recycled materials, ethical production), and determine a suitable price point. This information would inform the design and marketing of the new clothing range.

Using focus groups to anticipate changes in customer needs offers both benefits and drawbacks.

Benefits:

• In-depth Insights: Focus groups allow for detailed discussions with customers, providing rich qualitative data about their motivations, attitudes, and perceptions. This can uncover needs that might not be apparent through other methods.
• Idea Generation: The interactive nature of focus groups can stimulate idea generation and provide valuable feedback on new product concepts or marketing campaigns.
• Understanding Customer Sentiment: Focus groups can reveal underlying customer sentiment and identify potential concerns or objections to new offerings.

Drawbacks:

• Small Sample Size: Focus groups typically involve a small number of participants, which may not be representative of the entire target market.
• Groupthink: Participants may be influenced by the opinions of others in the group, leading to biased or inaccurate responses.
• Time and Cost: Conducting focus groups can be time-consuming and expensive, requiring skilled moderators and participant incentives.

Therefore, while focus groups can provide valuable insights, businesses should consider their limitations and use them in conjunction with other research methods to obtain a comprehensive understanding of customer needs.

Answer: A retail company can employ several strategies to build strong customer relationships and foster loyalty. Here are three examples:

• Loyalty Schemes: Implementing a loyalty card or points-based system encourages repeat purchases. Customers earn points for spending, which can be redeemed for discounts or rewards.

  Benefit to the business: This strategy increases customer retention, provides valuable data on customer spending habits, and can boost sales. It also creates a sense of exclusivity and appreciation for loyal customers.

• Excellent Customer Service: Providing friendly, helpful, and efficient service at all touchpoints (in-store, online, phone) is crucial. This includes quick responses to queries, resolving complaints effectively, and going the extra mile.

  Benefit to the business: Positive customer service leads to higher customer satisfaction, positive word-of-mouth referrals, and increased customer lifetime value. It builds trust and strengthens the brand image.

• Personalized Communication: Collecting customer data (with consent) to tailor marketing messages and offers to individual preferences. This could involve email marketing with relevant product recommendations or personalized promotions based on past purchases.

  Benefit to the business: Personalized communication increases the effectiveness of marketing campaigns, making them more relevant and engaging for customers. This leads to higher conversion rates and improved customer engagement. It demonstrates that the business values the individual customer.