Marketing Study of Baby Phat Clothing

Given the complex nature of the modern business world, and the seemingly overnight success of some firms, this research was prepared in an effort to present information about one of these firms, Baby Phat Clothing, as well as problems currently facing the organization, possible solutions available for those problems, as well as a choice of solution and the implementation of the chosen solution itself. All of this will be done within the scope of The Pisco Format and recently studied marketing principles. At the end of the research, a Conclusion section will summarize all of the research and findings contained herein.

Information About Baby Phat, Inc./Problems Facing the Organization

At the risk of using worn out slogans, Baby Phat is truly one of the classic American success stories of the business world. The company was started in 1998 by Russell and Kimora Lee Simmons as one part of what would ultimately become a billion-dollar empire (Baby Phat Clothing). This clothing line became hugely successful in no small part due to the Simmons' vast experience in the lucrative world of hip-hop, urban based music. With this knowledge base as the cornerstone, Russell and Kimora Lee created a fashion sensation which combines the styles that the rich and famous of the world prefer with an edgy, urban-flavored flair, with a taste of the original fashion statements that early hip-hop musicians (Russell Simmons among them) made when appearing in concert before thousands of fans, or in their latest music videos, literally beamed around the world by satellite television systems and channels like MTV and VH-1. By exposing urban fashions to those who have the financial means to purchase high-end fashion, a dynasty was born, and in a short few years, has taken on a life of its own.

As a side comment on the beginnings of Baby Phat, it is interesting to consider that the company, by its unique nature, created a new method of branding and price setting. With no frame of reference, the affluent Baby Phat target market willingly paid high prices in the early days of the product line, clearly identifying Baby Phat as a unique company from the start (Hughes).

Given the fact that Baby Phat has enjoyed a short road to success on its own terms and every indication of growth opportunities going forward, the road that lies ahead for the firm may very well be one of its biggest obstacles; simply stated, there is a problem in that Baby Phat may fade from popularity if styles and preferences among the trendsetters of the world start to change (Chappell). Because of Baby Phat's association with hip-hop music and culture, if the taste for hip-hop dies, so too could the Baby Phat empire. This problem has come to be as a result of the ever-changing taste of the consumer, which has made planning, implementation and control of marketing strategies exceedingly difficult.

Solution Options for the Problem

While the problem that Baby Phat faces is substantial, it is inaccurate to assume that the problem cannot be solved, or that it could in fact lead to new opportunities and organizational growth if properly managed.

Upon taking a closer look at the possible avenues that Baby Phat could take to solve the problem, there are three options that are most practicable, possible, achievable. These options are as follows:
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TOTAL DIVESTITURE
Simply stated, what this would mean for Baby Phat from a strategic and marketing point of view is that the firm would remove itself totally from the fashion industry, and rework the Baby Phat name for use in marketing another product or family of products. Of course, engaging in this option would entail the development of a completely new product development and management system.

If this option were chosen, several marketing concepts would need to be put into action. Global marketing and international business practices would most surely be an important player in total divestiture, as untapped markets beyond the borders of the United States would be fertile ground upon which to grow new markets for new products. Because of the entry into new markets and nations, ethics would also be essential to build consumer confidence and a favorable image for Baby Phat products, whatever they may be. Lastly, a great deal of branding would be undertaken to use the established Baby Phat name to attract customers to the new products.

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HORIZONTAL MARKET INTEGRATION
What is meant by a horizontal market integration is that efforts would be directed into the marketing of related products, also under the Baby Phat name.

As in the case of divestiture, branding will be extremely vital in this case, as would be the study of consumer behavior to pattern the marketing of these related products to the previously successfully marketed core products of Baby Phat.

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VERTICAL MARKET INTEGRATION
In vertically integrating the marketing strategy for Baby Phat, what the organization would essentially be doing is engaging in the offering of products that are totally unrelated to the core product, which in this case is clothing.

Moving into totally new markets that are not related to the markets which have given Baby Phat its current success and status in the fashion industry, not to mention pop culture, would be no easy task. Before any such move could possibly be considered, a great deal of marketing research would need to be conducted up front to learn the behavior of consumers in other markets to see where Baby Phat could most effectively recreate earlier successes. When the viable options were identified, products would have to be developed to cater to the needs and wants of the chosen markets. After that, the branding and price setting processes would commence, and changes to all aspects of the process would need to be monitored and adjusted accordingly, if needed.

In exploring these various options, one fact becomes quite clear; to engage in every option would stretch the resources of the organization too far and would most likely result in too mixed of a marketing message for the target market to comprehend, and they could very likely feel alienated and seek other choices. Therefore, it is important to not only choose a definitive solution, but also a means by which that solution will effectively be put into operation.
Choice of a Definitive Solution

Taking into consideration the need for rapid and effective results with the lowest possible risk, available resources, and the marketing tactics that will be involved, the solution that should be chosen for Baby Phat to enjoy continued success and growth in the future is Horizontal Market Integration, a choice which is defended by the following logic; it is an established fact that Baby Phat rose literally out of nowhere and cleverly blended subculture, fashion and trends to produce a clothing line that quickly had the most affluent members of society lining up to buy their products. This rise to power, however, was not a fluke-it was the result of listening the voice of the consumer, studying previous trends and buying habits, and innovatively offering something totally new and different while being able to dictate pricing and the tone of the overall marketing message (Hughes). Therefore, it makes perfect sense for Baby Phat to borrow the key ingredients of this recipe so to speak and use them to market other products that the firm has some indication that the consumer will want to buy.

Operation of the Solution

Moving forward with Horizontal Market Integration under the premise that Baby Phat has proven its knowledge of target markets, behavior of these consumers, their pricing thresholds and the like, the operation of this solution for long term solvency would move forward along the guidelines of proven marketing management; possible new products would have to be branded and test marketed to determine the proper product mix, the chosen products would have to be quickly integrated into Baby Phat's current marketing activities both "on the street" and via the World Wide Web, and every attempt would have to be made to link all of the Baby Phat products to each other in the mind of the consumer. This would additionally set the stage for the later introduction of new products, once again after the application of effective marketing tools to determine the viability of the products in the open market.

Also important to state is that this new marketing effort does not have to be limited by geographic borders; due to the availability and relative ease of using Internet technology, Baby Phat can operate virtual storefronts in every corner of the civilized world.

Conclusion

In this marketing research report, a unique and rapid American success story has been presented and analyzed both in terms of its past marketing successes as well as how those past successes could be harnessed for future longevity. In the midst of all of this, the tried and true methods of conventional marketing could not be ignored because for all of the innovation that Baby Phat has used in its rise to the top, none of it would have been possible without taking a page or two from the traditional marketing playbook. For other firms looking to move forward, using conventional marketing concepts, with a twist, could likewise lead to a success story and change the face of the business world forever.

Works Cited
Baby Phat Clothing. 2006. Baby Phat, Inc.. 3 Oct. 2006 .
Brown, A. (2004, March). Simmons Gets $140 Million for Clothing. Black Enterprise, 34, 25.
Chappell, K. (2003, July). The Billion-Dollar Hip-Hop Empire of Russell Simmons. Ebony, 58, 168+.
Hughes, A. (2002, June). Phat Profits: From Entertainment to Apparel, Rush Communications Has Become the Leader in Urban-Focused Products by Moving to Its Own Beat. Black Enterprise, 32, 149+.