Final Major Project- Feasibility study

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Feasibility study Andreea Bondor Fashion Communication and Promotion


“The clothes are chic but girly, the one that wears them will always appear fresh and happy, delicate and innocent, yet sensual and utterly seductive.”

Contents

Executive summary.........................................................3 Maria Lucia Hohan

Introduction…...................................................................4 Aim and objectives.........................................................5 Company background...............................................…6 Target consumer…..........................................................7 Rationale...........................................................................8 Commercial relevance................................................10 Critical path...................................................................11 Project outcome............................................................12 Conclusion......................................................................13 References......................................................................14 Appendices….................................................................15


Executive Summary

This feasibility study justifies the sustainability and viability of the expansion of the luxury fashion brand Maria Lucia Hohan within the UK market as well as enhancing its establishment through comprehensive PR and marketing campaigns. MLH products consist of luxurious, feminine dresses; the brand is not restricted to a specific age group, due to the fact that the designs are delicate, timeless pieces featuring both pastels and bold colours. The approach of this project will focus on establishing the brand and it will rebrand MLH’s visual communications so as to fit the British market and appeal to its consumers. The strategies proposed in this case consist of a strong PR campaign aimed at grabbing the media’s attention, this way raising the brand awareness within the consumers; marketing communications strategies are presented and they will focus on redesigning MLH’s website by making it more visually appealing, consistent and interactive. A boutique opening and a launching event are also proposed.

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Introduction This feasibility study explores the achievability of expanding the Maria Lucia Hohan brand in the United Kingdom within a comprehensive and strategic marketing and PR support. A series of aim and objectives will be set, an extensive research of the brand’s background and consumer will be provided in order to gain a better understanding of MLH’s ethos and targeted market. A rationale and commercial relevance will be presented so as to justify the relevance and rationale of the campaign. A critical path will be outlined to show what tasks and strategies the project’s success requires.

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Aim and objectives Aim To devise a strategy for UK expansion which is effective for both, the company and the customer, as well as creating an original integrated marketing and PR campaign to signal and support the brand’s growth in Britain. Objectives 1. Expand MLH and bring consistency into the brand’s munications.

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2. Devise a marketing campaign for the Autumn/Winter 15-16 season that will establish the brand’s presence in the UK, utilising various tactics such as social media and digital marketing campaigns which will attract the customers. 3. Create a comprehensive PR strategy in order to get the evant media’s attention.

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4. To successfully expand the brand within the UK market, measurable by a rise in UK sales, press coverage and social media followers. 5. To manage the project with direct reference to the ‘critical path’ and to successfully meet the deadlines.

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Company background Maria Lucia Hohan started the eponymous brand in 2003, in Romania’s capital city, Bucharest, at the young age of 23. She created elegant and ethereal gowns which caught the attention on the Romanian media, and magazines such as Elle, Glamour and Cosmopolitan started featuring her dresses. In February 2006 she expands her business by showcasing her designs at Paris Fashion Week, which was an instant success due to a high volume of requests worldwide, via her website. 2010 was the year Marie Lucia Hohan reached a luxurious niche market: Hollywood. Ever since, countless celebrities, such as actresses Eva Longoria, Mila Kunis or E! News host Giuliana Rancic have been wearing her designs. The following, year, in 2011, MLH’s revenue was €500.000 (£370.000). Hohan’s concept is to create provocative, yet innocent looking outfits which boost the self-esteem of the wearer and make her more feminine and playful. She perceives her designs as accessories that enhance the beauty and the personality of women.

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Target consumer Maria Lucia Hohan’s designs are not targeted at a specific age group, but they address to women of all ages who seek elegance, timelessness and are keen on the ethereal, playful, yet seductive appearance of the dresses. Judging by the brand’s price points, i.e. £600-1200, the dresses are likely to be purchased by career orientated women, with a stable income who are willing to invest a considerable amount of money for a special occasion gown. These women are likely to be aged between 25 and 34; according to Mintel (2011) this age group is expected to grow by 10% in 2016. ‘This demographic are enthusiastic luxury shoppers with greater spending potential than under-25s.’ (Mintel, 2011) They are part of the increasing affluent AB and aspirational C2s categories and they are more likely to purchase luxury clothing, which benefits the companies. (Mintel, 2011) The main reason people buy luxury items is to treat or indulge themselves; however the second reason consists of the high quality and craftsmanship of the item. The young professionals, under the age of 25 are part of the first category, while the ABs are attracted to the quality of the luxury goods.

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Rationale Romanian luxury fashion designer brand, Maria Lucia Hohan, will be proposed to expand within the UK market with the use of marketing and PR, to assist the launch of a user friendly website in order to support a digital campaign and a boutique in London which will be inaugurated by a fashion show event. Maria Lucia Hohan’s designs are available worldwide via her website, www.mlh-shop.com; the prices range between £600 and £1200 for dresses, therefore, customers are more likely to make the investment after trying on the dress, rather than via online shopping, due to the high price points. Even though, the campaign will focus on in-store sales, the on line sales for MLH will not be overlooked as they are of major importance for the brand. According to Mintel (2011), there has been a shift towards quality over quantity in the consumers’ purchasing preferences; therefore, consumers in the UK are more likely to invest a considerable amount of money in luxury pieces, this way stimulating the fashion sales towards the premium end of the price range. UK based consumers can purchase MLH creations from her website but a few of her dresses are already available in concession stores such as Fenwick and 202 Boutique in London. However, these stores only dispose of a maximum on ten garments, which is a small percentage in comparison with the brand’s collections. The presence of MLH designs in London stores indicates the fact that there already is a foundation for demand in the UK market, which can be built upon. It also supports the proposal to open a London-based, stand-alone boutique. These elements will be accopanied by an integrated campaign establishing the brand to 8 the British audience.


In order to achieve the success of this project, the following PR and marketing strategies have been proposed:

promotional video where the designer will present the brand, and at the same time,introducing it to the British customers;

PR strategies

-opening a showroom/boutique in a well-chosen location in London where MLH designs will be exhibited with the possibility of on spot purchase or custom made adjustments; a store layout plan and design will also be provided;

Prior to the application of the marketing initiatives stated below, a strong PR campaign will be necessary in order to raise the awareness of the brand’s expansion in the UK market:

-the store launch will be accompanied by a fashion show event presenting the Autumn/Winter 15-16 collection, taking place within the premises where will be invited journalists from relevant media as well as celebrities and socialites.

-press kits will be sent to the relevant media such as Elle, Harper’s Bazaar and Glamour, as well as The Guardian, in order to get press coverage and raise brand awareness; the press kits will include a look book, press releases, invitation to the launch event as well as a small gift;

The expansion of MLH in the UK will also focus on the consistency of the brand’s visual communications, due to the fact that momentarily the brand’s image is not very clear and uniform. The rebrand of MLH will strongly convey the ideas of femininity and etherealness by the use of appropriate imagery and design, both in-store and online.

-the brand’s collection will be promoted by sending outfit samples to influent British people and celebrities in order to be worn at major UK based events.

Marketing strategies

Further in-depth research will contribute to establish a campaign concept fitting the British market and consumers which will send the idea of luxurious apparel.

-redesigning the website and making it mobile and tablet friendly; -more active social media presence (Twitter, Instagram, Facebook, Pinterest) -website rejuvenation and introduction of the ‘MLH world’ section, this way becoming more appealing to customers who are keen on digital brand interaction, providing content such as ‘making of’ and ‘behind the scenes’ videos which will give the customers an insight of how MLH dresses are made and a

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Commercial relevance According to Mintel (2014), as the UK has emerged from the economic downturn, women over the age of 16 were more likely in 2014, compared to the previous year, to prioritise buying new clothes with their disposable income. A strong digital marketing campaign is appropriate in this case due to the fact that, according to Mintel (2014), 87% of British households had broadband access in 2013. Based on a survey on 2000 internet users aged over 16, 79% have shopped online for clothes by using a computer, 16% by using a tablet while in the household and 20% have used a smartphone. (Mintel, 2014)

According to Master Card: Global destinations city index (2014), London has been the most visited city in 2014 with approximately 18,69 million visitors, followed by Bangkok and Paris. Taking into consideration the market positioning of the MLH brand, the predicted climate of the luxury market and the excellent commercial and touristic features and advantages of London, it is a perfect time for the MLH brand to enter the UK market and offer its customers unique, high quality and affordable garments.

Luxury market in the UK Personal luxury goods, the core of the luxury market had been expected to reach €223 billion in 2014, which makes it triple its size twenty years ago. There is a gradual, yet steady growth in the luxury market; ‘that slower pace is, however, more sustainable, and it reflects the “new normal” for luxury goods, particularly as the global economy continues its sluggish recovery from the financial crisis of 2008. ‘ (Bain&Co, 2014) It is also notable that luxury goods purchases do not always take place at home. According to Bain&Co (2014), people are more willing to invest in luxury items while travelling, so as to make the purchase part of the extravagant holiday experience.

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Critical Path In order to ensure a professional execution of the project, a critical path has been created. It structures and monitors the whole development and tasks required for the project’s outcome.

Week 26 27 28 29 30 31 32 33 34 35 36 37

Date 23.20.15 02.03.15 09.03.15 16.03.15 23.03.15 30.03.15 06.04.15 13.04.15 20.04.15 27.04.15 04.05.15 11.05.15

Task Research promotional strategy, clarify what components will make up the final project Start promotional strategy research future details Feasibility study feedback; consider changes and apply for W29 critique Booking models, photographer, location for photo shoot continue promotional strategy, start press kit Website proposal, store proposal, event proposal Website proposal, store proposal, event proposal Look book photo shoot Design look book layout edit the proposals and finish press kit Supercrit feedback; consider and apply changes Proofreading and eventual editing, send to print, tidy up research folders Printing allocated time, tidy up research folders Hand in FMP

Writing and drafting Research Reflection points Practical elements Proofreading and printing

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Project outcome The proposal of expanding Maria Lucia Hohan within the UK will benefit both the market and the customers by bringing a new approach of the elegance, price wise, as well as in terms of aesthetics. To fulfil the proposal, branded material will be created to implement the marketing and PR strategies as well as he store launch. A marketing communications plan outlining the proposed digital campaign and website design as well as a store layout will be provided. In order to support these initiatives, a PR strategy will be presented, consisting of a series of press releases announcing the brand’s expansion as well as informing the media about MLH’s store launch and fashion show event. Press kits will be sent to the relevant journalists and will consist of press releases, look books, invitation for the store opening event as well as a thoughtful small gift. An event proposal and store launch with suitable premises, store layout and in-store promotional materials will be created.

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Conclusion This feasibility study has concluded that the expansion of Maria Lucia Hohan on the UK market is viable and supported by the findings presented within this document. The already existing demand of the brand’s products in Britain as well as the presence of MLH designs in concession stores in London justifies the brand’s potential in the market.

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References Fashiondistrict.org, (n.d), Pinterest post,2 Retrieved from: https:// www.pinterest.com/pin/439382507369285957/

Bain and Company, December 2014, Luxury Goods Worldwide Market Study Fall-Winter 2014: The rise of the borderless consumer; Retrieved from: http://www.bain.com/publications/articles/ luxury-goods-worldwide-market-study-december-2014.aspx Ele, Maria Lucia Hohan, (n.d) Retrieved from: http://www.ele.ro/ maria-lucia-hohan/biografie Mintel, May 2014; Womenswear UK 2014; women’s spending priorities Retrieved from: http://academic.mintel.com/display/704973/ Mintel, November 2011; Consumer Attitudes Towards Luxury Brands - UK - November 2011; Retrieved from: http://academic. mintel.com/display/545468/ News room MasterCard, July 2014, 2014 Global destination city index; retrieved from: http://newsroom.mastercard.com/ wp-content/uploads/2014/07/Mastercard_GDCI_2014_Letter_Final_70814.pdf Perfecte(n.d)Maria Lucia Hohan; Retrieved from: http://www. perfecte.ro/perfecte-si-celebre/maria-lucia-hohan-designerul-care-a-dus-moda-romaneasca-pe-covorul-rosu-din-cetatea-filmului.html Stil feminine, (n.d.), Maria Lucia Hohan; Retrieved from: http:// www.stilfeminin.ro/Designeri/Maria-Lucia-Hohan.html Images Mlh-shop.com, (n.d.), Pinterest post,1, Retrieved from: https:// www.pinterest.com/pin/374854368958660509/

Blog.stilagio.ro, (n.d.), Pinterest post, 3, Retrieved from: https://www. pinterest.com/pin/255157135108935724/ Cat-arzyna.tumblr.com,(n.d.) Pinterest post, 3, Retrieved from: https://www.pinterest.com/pin/382524562073925569/ Luisaviaroma.com, (n.d.), Pinterest post, 4, Retrieved from: https:// www.pinterest.com/pin/136515432427139896/ Luisaviaroma.com, (n.d.), Pinterest post, 5, Retrieved from: https://www.pinterest.com/pin/397794579558216160/ Adorevintage.com, (n.d), Pinterest post,6, Retrieved from: https:// www.pinterest.com/pin/174373816796290157/ Kayture.com, (09.01.2013), 7, Retrieved from: http://www.kayture. com/wp-content/uploads/2013/01/8361360029_c48275179b_b.jpg Promdress201.com, (n.d.), 8, Retrieved from: http://www.promdresses201.com/wp-content/uploads/2014/11/maria-lucia-hohanvenetian-red-dresseslook-main-single.jpg Zimbio.com, (n.d.), 9, Retrieved from: http://www4.pictures.zimbio. com/gi/Premiere+Warner+Bros+Pictures+Journey+2+Mysterious+OAe7FDyLZSTx.jpg Polyvore.com, (n.d.), 10, Retrieved from: http://cs4414.vkontakte. ru/u50333909/113109725/x_8ec944d1.jpg Niusnews.com, (n.d.), 11, Retrieved from: http://www.niusnews.

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Appendices

Appendix A Competitors High Price

Modern Classic

Creative Edge

Low Price

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