J.Luxe Marketing Plan by Angela Peng

J. LUXE MARKETING PLAN Angela Peng Hannah Poppell Shannon Steinberg

TABLE OF CONTENT

I. Executive Summary

II. Product Identification

III. Situatioin Analysis ◊ PESTEL Analysis ◊ SWOT Analysis

IV. Target Market Assessment ◊ Industry Analysis ◊ Target Market Analysis ◊ Target Customer Analysis

V. Brand Positioning ◊ Perceptual Map ◊ Position Statement ◊ Brand Collateral

VI. Marketing Mix ◊ Product ◊ Place ◊ Promotion ◊ Price

VII. Marketing Strategies ◊ Strategy 1 ◊ Strategy 2 ◊ Strategy 3

VIII. Conclusion

I. Executive Summary

Company and Product Strategy 1: Promotion - J Luxe will focus its promotional efforts on a multi-channel digital media campaign. Through income based geotargeting, J Luxe will reduce the risk of wasting advertising funds on areas of low potential growth, and capitalize on areas with the greatest potential reward. The brand will utilize different forms of digital media as a means of primary marketing and advertising strategies, including: email, text, social media platforms, and mobile applications. J Luxe will offer exclusive promotional incentives for customers that engage with the brand through select digital channels. Additionally, J Luxe will strategically partner with top fashion and lifestyle influencers and supporting online retailers to promote brand awareness and expand its customer base. J Luxe will also offer a customer loyalty program, which will promote future purchasing incentives.

Company and Product

Luxe is a leading women’s luxury activewear brand that provides the most innovative and fashion-forward products on the market. Through extensive research and experimentation, J Luxe is the first brand to offer pieces that combine the power of resistance bands and jade infused fabrics, to create products that lift, shape and tone the body, while simultaneously maintaining cool body temperatures to help keep the wearer comfortable while performing daily activities. The line cultivates sophisticated and contemporary styles, and offers optimum functionality for pieces that can be worn as activewear, leisurewear, and streetwear; offering products that can travel beyond the gym. At its core, J Luxe believes in creating products that change bodies, enrich lives, inspire adventure, and empower women to be the best version of themselves.

Strategy 2: Place – J Luxe will generate direct online sales through the J Luxe website, as well as wholesale sales through select retail partners such as premium luxury department stores. J Luxe will provide its retail partners with promotional materials to be used to draw customer attention to their department store websites and mobile applications. J Luxe will also implement marketing strategies that target buyers who purchase luxury goods for their stores.

Market and Key Consumer Segment J Luxe functions in the women’s luxury activewear market within the United States. According to proper market assessments, the women’s luxury activewear market in the United States has high growth potential, as it is growing at a faster rate than the sportswear market as a whole. To the brands benefit, the luxury activewear market within the United States has yet to become saturated, which provides J Luxe greater opportunities for brand expansion and product differentiation.

Strategy 3: Price – J Luxe will price its products at a consistent rate, starting at a minimum of $800, to ensure that the brand’s reputation of exclusivity and sophistication remains pure amongst consumers of luxury activewear. The brand’s pricing strategy is based off a product cost concept analysis that takes into consideration the cost of materials, manufacturing, distribution, marketing, and accounts for unforeseen costs. Additionally, J Luxe will price its products by positioning itself higher than the more accessible and lower quality luxury brands, but lower than more established luxury brands, which will strategically place J Luxe middle of the market.

The customer within the brands primary focus resembles the educated and ultra-affluent woman, between the ages of 25 and 44, with an average household income of $350,000 or greater, residing in trending suburban and urban areas of wealth within the United States. The women within this segment desire high-quality garments with revolutionary features, and seek products that complement their bodies and promote self-esteem. J Luxe caters to their target consumer segment by creating the ultimate customer experience where luxury meets performance. Offering the most advanced body enhancing products on the market at the highest levels of quality.

I. Product Identification

Luxe is a functional and sophisticated luxury activewear brand, providing distinctive products designed to help women achieve optimal health, vitality and confidence. J. Luxe aims to fashionably enhance the consumer’s figure, by providing leggings and tops that offer various levels of shape control for women of all body types. Leggings in this line have resistance bands embedded into the fabric, that are intended to lift and tone the consumer’s backside, while also burning additional calories throughout the day. Tops include a slimming, corset type feature, which is designed to help shape the consumer’s abdomen over the course of use. All J Luxe products are made from jade infused lightweight fabrics with added bio-derived Lycra fiber for stretch and shape control; creating an additional smoothing effect that provides a seamless silhouette for all consumers. Jade is thoughtfully incorporated into the fabric to provide a cooling effect on the consumer’s body temperature. Additionally, jade is also used as a statement throughout the collection, as the delicate gem stone is mounted into the zipper ring to add a simple, yet rich touch of detail to each product. The collection integrates vibrant colors and simple, classic designs, to appropriately portray the brand’s vibrant personality and luxury lifestyle. Providing clothing that encourages joy and confidence in women. The name “J Luxe” is derived from prominence of jade throughout the collection, and the luxurious factors the line offers. J. Luxe is inspired by a similar product designed by Sweetflexx: a startup activewear line that sells leggings with resistance bands embedded into the front of each leg. While Sweetflexx has a great concept in their resistance band leggings, the styles of their products lack originality. J Luxe provides consumers with an upgraded, luxury version of the Sweetflexx legging. Featuring products that use the innovative technology of resistance bands, but are enhanced to incorporate unique shape enhancing features, unlike any other product on the market. Currently J Luxe caters solely to women, however, the brand has the potential to expand into the menswear market.

II. Situation Analysis PESTEL Analysis

Exhibit 1

Political

here is substantial uncertainty in American politics from the election of Donald Trump to the presidency. The decision he makes including tax reform, climate change rules and new infrastructure bill will affect a huge number of businesses in the entire world. Pertaining to the activewear industry specifically, China’s government has launched a national fitness plan with multiple investments to encourage the rising interest in sports, and to reduce the rising number of health problems such as obesity and diabetes. With ambitious goals to increase China’s “sport economy” to $850 billion by 2025, the country will make it the world’s largest. Such strong focus on fitness and sports indicates the activewear market in China has a promising outlook in the future.

Economic

J Luxe’s business performance depends on the state of economies where it sells its athletic apparel. The global apparel industry continues to grow at a healthy rate and has been shaped by three regional movementsthe economic recovery in the U.S, a sharp slowdown in Europe, and increasing growth in emerging markets. The sportswear is currently carrying the global apparel industry, and is predicted to grow to over $350 billion globally by 2020. The company has the opportunity to grow in the stable market such as the United States, which is predicted to grow to $83 billion by 2020. The U.S. is considered the world largest market for sportswear and the category is racing ahead over others in the apparel and footwear industry (Exhibit 1). For three consecutive years since 2013, the category has an increase of 7%, at fixed US dollar exchange rates (Exhibit 2). J Luxe also has opportunities to rapidly grow in high-growth developing countries such as China, where the sportswear market is developing rapidly and currently has a growth rate of 11%, which is higher than the US, growing at only 2.5%.

Exhibit 2

Social & Cultural

Intelligence, real time analytics and virtual sizing tools could help J luxe to personalize customer experience. Digital technology and e-commerce provides J Luxe greater communication opportunities to increase brand awareness and maximize accessibility.

onsumers are increasingly interested in health and fitness worldwide in recent years, with improving positive attitudes toward leisure and travel. More and more individuals are taking strides towards leading healthier and more luxurious lifestyles. With new brands and products that are geared towards an active lifestyle such as Birchbox, an athleisure-inspired skin and makeup collection designed specifically for women with active lifestyle, and Tarte’s Athleisure beauty collection that is appealing to active makeup users; women will be less concerned about their make up being smudged after exercising. Women will be more inclined to participate in sports activities and fitness than before, and the growing demand for activewear provides the opportunity for J Luxe to enter the market.

Environmental

J Luxe is a purpose-driven company committed to delivering quality products, and in doing so improves both human and ecological health through socially and environmentally responsible design and production methods. Sustainability is an essential part of the company’s core values. Manufacturing and material sourcing, production efficiency, product durability, and waste minimization are constantly monitored and measured by the company. Suppliers and manufacturing partners must meet sustainability requirements set by management to verify responsible business practices. J Luxe aims to provide competitive products that meet the needs of its customers and create value by effectively managing resource utilization, working to minimize environmental impact, and protecting the health and safety of its workers, customers, and communities. Consumer demand for apparel products that come from sustainable resources is increasing due to greater awareness of the environmental crisis the world is facing. A recent Nielsen study found three out of four millennials are willing to pay more for sustainable products.

With the largest population in the world, 415 million Chinese millennials, and growing middle class with higher income tend to participate in more sports and leisure activities in recent years. A rapidly growing consumer appetite for foreign sportswear brands also indicates an increase in sales among international sportswear companies. As sportswear leans further toward fashion, Chinese people are willing to spend more money on luxury labels. With the jade infused fabrics used in J Luxe’s products, the brand will have great potential to generate sales in the Chinese market. Jade has long been considered a sign of longevity and immortality, also is used in Chinese Medicine to draw out negative energy. Many Chinese people believe that wearing jade jewelries can increase blood circulation and assist lymphatic drainage. Using jade as a statement throughout the line creates a healthy and luxurious brand image among our consumers.

Legal

J Luxe must comply with laws, environmental and international standards, and supply-chain legislation applicable to the apparel industry to avoid facing potential legal issues that impact the company’s bottom line. Quality control and product safety are issues the company must stay on top of to prevent product recall and negative press. J Luxe needs to prioritize supply chain transparency and focus on building a reputation on ethical business practices. Additional legal issues facing the fashion industry that could affect J luxe include intellectual property protection, counterfeiting, consumer data protection, and employment laws.

Technology

Technology is a key component of the J Luxe brand, because of the innovative materials and advanced technologies used to design and engineer its distinctive products. Resistance wear technology embedded in the jade infused fabrics define the brand as a leading innovator in luxury active wear for women. The J Luxe product line offers unique performance and body shaping capabilities with the latest technologies in fabric and fibers that optimize health, improve confidence, and renew vitality. The combination of natural jade with microfiber technology differentiates its products. As technology continues to improve material innovation, design, and production methods, J Luxe has tremendous opportunity to expand its line of apparel and deliver new products that have a positive impact on people’s health. Fashion technology including Artificial

SWOT Analysis

Strengths

Weaknesses

◊ High quality Product

◊ Saturation of the sportwear industry

◊ Unique resistance band technology

◊ Strong competition

◊ Jade infused/temperature controlling fabrics

◊ Expensive nature of Jade

◊ Lightweight shape controlling fabrics

◊ Minimal product diversity

◊ Figure enhancing and confidence boosting sensation

◊ Trending designs and stylish prints

- Lack of menswear and children’s clothing

◊ Promotes an active and healthy lifestyle ◊ Ethical business practices ◊ Commitment to sustainability and transparency ◊ Jade embellished products

Opportunities

Threats

◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊

◊ Quality control and product safety issues that could lead to product recall and negative press ◊ Possibility of counterfeiting ◊ Compliance issues resulting from issues with fair labor practices and safe and humane working conditions ◊ Consumer data protection issues pertaining to e-commerce ◊ The election of U.S. Preseident Donald Trump imposes potential damage to the fashion industry, luxury market and global trade ◊ The possibility of computors creating products with similar resistance band technologies

Collaborations with other brands and artists Advanements in resistance band technology Implementation of innovative fashion technology - Enhance customer experience Increase in China’s “sport economy” Growth of the global sportswear industry Growth in stable markets - United States - China Increased global interest in healthy and active lifestyles Brand and product expansion - Menswear - Children’s Clothing 7

Strengths

Opportunities

◊ J Luxe provides consumers with products of high quality. ◊ Unique product design that incorporates the use of resistance band technology. - Provides consumers the possibility to burn additional calories while performing everyday activities. ◊ Products are made with jade infused fabrics, which help cool and regulate body temperature. ◊ Fabrics are lightweight and provide various levels of shape control to enhance the consumers body figure, which simultaneously provides an additional boost in confidence. - Resistance bands in leggings lift and tone the consumer’s backside. - Form-fitting “corset type” tops help accentuate the consumer’s core. ◊ Products in the collection portray trendy designs and stylish prints. - The brand promotes an active and healthy lifestyle, encouraging consumers to engage in health promoting activities. - J Luxe employs ethical business practices, and is committed to providing sustainability and transparency in all areas. - Jade embellishments aid in creating the ultimate luxury experience.

◊ J. Luxe collaborations with other brands, designers and artists will create brand exposure and expand J Luxe product design variation. ◊ Advancements in resistance band technology could lead to new features and consumer benefits. ◊ The implementation of new innovative fashion technologies, such as Artificial Intelligence, real time analytics and virtual sizing tools, will enhance the customer experience. ◊ The increase in China’s “sport economy” provides J Luxe with increased opportunities for brand expansion. ◊ Growth of the global sportswear industry supports the need for activewear. - Provides growth opportunities in stable markets such as: - United States - China ◊ Increased global interest in healthy and active lifestyles creates marketing opportunities for J Luxe to inform consumers of the health benefits of its products. ◊ Brand and product expansion to include menswear and children’s clothing will create opportunities for J Luxe to operate in new markets and increase sales.

Weaknesses

◊ Quality control and product safety issues could lead to product recall and negative press if they are not properly maintained. ◊ Possibility of counterfeiting imposes a threat to product integrity and brand reputation. ◊ Issues with fair labor practices and safe and humane working conditions could lead to compliance issues if not properly maintained. ◊ Consumer data protection issues pertaining to e-commerce could pose a threat to consumer’s that purchase products online. ◊ The election of U.S. President Donald Trump imposes potential damage to the fashion industry, luxury market and global trade. - European and Luxury stocks have fallen since election. - Asian markets have fallen. - Radical changes to trade could inhibit globalization. - Potential of imposing tariffs on all imports from China and Mexico. ◊ The possibility of competitors creating products with similar resistance band features could harm J Luxe’s originality.

Threats

◊ The activewear/sportswear industry is highly saturated, which creates difficulty to stand out. ◊ The industry is occupied by strong brands, such as: Lululemon, Nike and New Balance. - Creates an environment of strong competition. ◊ While using jade infused fabrics creates a unique luxury product, it also increases production costs. ◊ It is essential that J Luxe prices its products appropriately in order to make up for the higher production costs. ◊ The collection has minimal product diversity, as it only caters solely to women. ◊ The lack of menswear and children’s clothing present a void where J. Luxe could be attracting consumers in other markets.

III. Target Market Assessment

activewear company based out of London. Growth in new products and in the average prices of activewear wear are contributing to the growth in market size. During a three-month period during 2015, new arrivals of yoga pants increased 341 percent, compared to the same period in 2014. Additionally, the price of yoga pants also increased by 14 percent as more luxury brands entered the market. The activewear industry is not a saturated market and women’s leggings will continue to be one of the most popular products. Women’s leggings have averaged a 160 percent increase in full price sell outs over the past two years. Women’s activewear represents one of the most important categories in the apparel industry which puts J Luxe in a favorable position, and with the strengthening social acceptance of casual attire for work and play pared with consumers’ never-ending desire to look good and feel better, it shows no signs of slowing down.

Industry Analysis

omen’s activewear is a rapidly growing market in the U.S. apparel industry. This growth is attributed to the soaring popularity of fashion-infused athleisure wear coupled with an increased interest in fitness and health among women in the United States. The rising trend in stylish activewear for women has quickly become one of the biggest sources of growth in the apparel industry and looks promising for the future. In the U.S., retail apparel is a $225 billion industry and with part of that including activewear. Total sales for activewear in 2015 was estimated at $33 billion, with $15.7 billion coming from the women’s activewear market. In 2016, activewear represented 17 percent of total sales for the entire U.S. clothing market. Sales in activewear increased by 16 percent in 2015 from the year before, compared to a 2 percent rise in total apparel sales during the same period. Additionally, athleisure wear sales increased by 40 percent between 2010 and 2016. Women’s activewear is growing faster than the sportswear market in its entirety, as denim is declining in popularity and more women are choosing yoga pants over jeans. In the past year, online orders of yoga pants have risen by 41 percent. With dramatic improvements in material innovation and clothing designed to look good and perform well, activewear continues to gain new customers by the day as more people are blending fitness and wellness into their lifestyles and seeking fashion-forward clothing that offers performance, versatility, and style. By 2020., activewear apparel in the U. S. is projected to add $83 billion in sales. The United States is the largest market for activewear products and accounts for 36 percent of all activewear sales worldwide. The luxury activewear market has high growth potential as the women’s apparel industry evolves further and increases opportunity for J Luxe to differentiate its products from other companies in the space. Demand for luxury activewear is increasing prompting more designers to offer products that combine high fashion with athletic performance. For example, the U.S. accounts for twenty percent of all online sales in Lucas Hugh’s luxury

Timeline of the Emergence of More Casual Style of Dress and Athleisure

Target Market Analysis

Luxe’s target market focuses on educated and ultra-affluent women, ages 25 to 44, with an average annual household income of $350,000 or more, residing in trending suburban and urban areas of wealth in or near the major cities within the United States. The United States is the third largest country in the world with a population of roughly 326 million, of which roughly 143 million are women. Women are the world’s most powerful consumers, and the purchasing power of women within the United States is increasing as their levels of education, work force participation, and earning power increase. According to a recent study conducted by the National Center for Education Statistics, women make up a large percentage of some of the highest paying jobs in America, such as: 31 percent are dentists, 33 percent are lawyers, 43 percent are marketing and sales managers, 56 percent are pharmacists, and 36 percent are physicians and surgeons. Additionally, 73 percent of women in the United States report controlling or influencing all household spending.

containing the wealthiest Millennials America is Arlington, Virginia, with 8.7 percent of wealthy Millennial residents, and a median home value of $607,100. Additional cities include: San Francisco, CA; Huntington Beach, CA; Sunnyvale, CA; Seattle, WA; Pasadena, CA; Denver, CO; Cambridge, MA; Washington, D.C.; New York City, NY; Oakland, CA; and Jersey City, NJ. The United States is often described at the “melting pot”, because of its immense cultural diversity. Clothing styles typically vary based on factors such as social status, region, occupation and climate. According to InStyle Magazine, the top ten most fashionable cities in the U.S. in 2016, listed respectively were: Los Angeles, CA; New York City, NY; Anaheim, CA; Riverside, CA; Austin, TX; Orlando, FL; Chicago, IL; Seattle, WA; Atlanta, GA; and Miami, FL. Additionally, fashion within the United States is largely influenced by celebrities and the media. According to a recent study conducted by the University of Arkansas and the Manchester Business School in London, 14-19% of advertisements aired in the United States featured celebrities that endorsed products and brands. Celebrities inspire consumer confidence and provide an instant connection to a product.

The women within the target market can be segmented to differentiate between generations. Younger customers, ages 25-34, are classified within the Millennial Generation, which consists of anyone born between 1981-1997. Older customers, ages 35-44, are classified within Generation X, which consists of anyone born between 1965-1980. The Millennial Generation is the largest generation to date, with approximately 83 million individuals, representing one quarter of the nation’s population. Generation X consists of approximately 65 million individuals, and is the nation’s third largest generation. According to Fortune Magazine, roughly two-thirds of the nation’s high net worth individuals reside in one of the following cities: New York City, NY; Los Angeles, CA; Chicago, IL; Washington, D.C.; San Francisco, CA; Boston, MA; Houston, TX; Philadelphia, PA; San Jose, CA; Dallas, TX; Detroit, MI; and Seattle, WA. Furthermore, Millennials with an average annual income greater than $350K make up for 1 percent of the Millennial population. Based off a study conducted by Zillow, the city

continue to elevate the style elements through collaborations with top designers and celebrity endorsement, they are not targeting at those ultrawealthy and sophisticated women who want to invest in high quality, credible products that no one else possesses. Along with other brands, Lululemon and Under Armour, these sportswear giants already have the strength and innovation, but they could lose out to smaller competitors that offer more unique and specialized product. This allows J Luxe to put more energy into each product as it merges the worlds of activewear and jewelry with scientific proofs of different functions. J Luxe has the potential to survive through the sportswear market as well as the luxury market. The target consumers today shop for sneakers with Chanel double Câ&#x20AC;&#x2122;s, ski slopes in Fendi gear, casual sweatshirt at Alexander Wang and other luxury brands who are introducing modern and trendy athleisure elements into their collections. However, these women expect to shop for more specialized activewear with high technology uses that can treat their bodies right in the process and make them feel fashionable and stylish at the same time.

Target Customer Analysis

he way people dress has changed drastically in the U.S. in recent years. People tend to move away from traditional and classic styles and start to look for utilitarian clothing with comfortable and technologically incorporated fabrics. As consumer spending on health and fitness grows among middle to upper classes, J Luxe has a promising outlook in the luxury activewear industry and the section bellow explores the target market that J Luxe should pursue within the segment to become successful as it enters the market. Quantitative identification: The potential target customers for J Luxe are ultra-affluent women. They spend a reasonable percentage of money on luxury activewear for travelling, exercising, and leisure intensive activity purposes. They live in fashionable neighborhoods on the urban fringe in large sized cities across the nation, surrounded by high-end clothing boutiques, trendy fitness clubs and casual restaurants and coffee shops. A vibrant social scene surrounds their homes and stimulate them to keep up with the current trends and modern lifestyles.

IV. Brand Positioning

Qualitative identification: Based on the eight types of VALS, J Luxe consumers are Innovators and Experiencers who are confident enough to experiment and always up on the latest fashion. Their shopping attitudes gravitate towards niche brands rather than mainstream sportswear brands. With a sociable and spontaneous personality, these potential consumers have a wide variety of interest and activities and enjoy seeking and learning. With upscale fitness outlets such as Equinox and Soulcycle popping up at various locations in different states, J Luxeâ&#x20AC;&#x2122;s target customers start to involve themselves in the heathy living and self-improvement stage in recent years. Consuming fashion and accessories is becoming less important for the affluent consumers. They want to live a new luxury life based on activity, travel, and a variety of premium experiences to improve the quality of their lives, therefore, the demand for luxury activewear is growing rapidly. Even though some major players in the industry such as Nike and Adidas,

J Luxe Position Statement To the chic and sophisticated ultra-affluent woman between the ages of 25 and 44, who leads a luxurious life, seeks adventure, actively pursues a healthy lifestyle, and desires high-quality, cutting edge activewear; J Luxe offers the most rarefied products that provide comfort and promote self-confidence, while simultaneously providing unique health benefits. J Luxe is the first luxury activewear brand to break the confines of traditional activewear, by utilizing the power of resistance bands to create products that work with the consumerâ&#x20AC;&#x2122;s body to burn additional calories while performing everyday activities. Moreover, all J Luxe leggings and tops are meticulously crafted from jade infused fabrics to help regulate body temperatures, and are embellished with jade gemstones that optimize vitality and make for highly coveted products that emanate the ultimate luxurious feel.

Brand Collateral

Hang Tags

Package

Brand Collateral - Website Design and Mockups

V. Marketing Mix Product

he J Luxe resistance band legging is the brand’s primary product. The J. Luxe resistance band legging is the only legging on the market to utilize the power of resistance bands to help the consumer burn extra calories while performing everyday activities. The legging also helps shape, lift and tone the consumer’s legs and backside. Additionally, J Luxe leggings are made of jade infused fabric, which aids in the regulation of body temperature and helps cool the body during physical activity, and added-derived lycra fiber for stretch and shape control. The leggings are also embellished with delicate jade gem stones which add the final touch of detail to create the ultimate luxury legging. The legging offers customers a handful of benefits, such as:

• • • • • •

Alternative product on the market include a higher priced product, the Givenchy “Skinny Fit Leggings”, which retail at $1,290 USD. However, this product does not offer the resistance band technology and is not made of jade infused fabric. Another similarly priced product, the “Cuffed Legging Swarovski” by Monoreal, retails for $795 USD and embellished with a side stripe detail of Swarovski crystals down each leg. This is the closest product on the market to the J Luxe resistance band leggings as it is embellished with crystals, but it too lacks the resistance band technology and jade infused fabric. On the opposite end of the spectrum, there are more affordable leggings offered by brands such as Michi, which retails its products around the $200 - $300 USD price range. As well as Cynthia Rowley, which offers high-quality activewear ranging from $150 - $300 USD. However, J Luxe is the only luxury activewear brand that offers high-quality, luxury activewear that harnesses the power of resistance bands and employs the cooling power of jade infused fabrics to create activewear that provides women the ultimate balance of comfort and functionality, and offers unique brand specific features unlike any other on the market.

the ability to burn extra calories sculpting of the legs and backside tight compression materials that make for a smooth silhouette cooling sensation from jade infused fabrics bold and bright colors and designs that stimulate joy and confidence stretch and shape control

Key components of the leggings include: • • • • • • •

jade infused fabrics jade embellishments gold zippers and detailing smooth sculpting and compression fabric bright colors and designs new innovative resistance band technology added-derived lycra fiber Monoreal “Cuffed Legging Swarovski” $795 USD

Michi “Spire Leggings” $295 USD

Cynthia Rowley “Jewel Print Legging” $158 USD

Place

Luxe will utilize all new and innovative forms of marketing through online digital media advertising and promotion through social media platforms. Due to the exclusivity of the brand and the ultra-affluent women the brand intends to target, J Luxe will market through unconventional forms of media, rather than traditional forms like television and radio, because it will help maintain the brand image without producing over exposure. The digital media and social media campaign will utilize the inexpensive forms of advertising through platforms such as: Facebook, Twitter, and Instagram. As a supplemental form of digital media advertising, J Luxe will recruit the help of the top fashion and lifestyle bloggers to advertise its products on their blogs and social media pages. In utilizing the help of the top influencers, J Luxe will gain the support of these influencers, which will aid in building a strong consumer base, because consumers who look to these influencers for fashion guidance will be more inclined to purchase J Luxe products.

J. Luxe

In addition to online digital media advertising and social media platforms, J Luxe will utilize advertisement through the top fashion magazines, such as Vogue, Elle, Glamour, InStyle, Harper Bazaar, and Dolce Vita. As well as luxury lifestyle magazines like the Robb Report Magazine, Upscale Living Magazine, and Palm Beach Illustrated. These advertisements will make a statement beyond the products being sold; they will stimulate creativity and facilitate emotional connections with between J Luxe and the target consumer. J Luxe believes it is important to create a luxury experience that is personal and relevant to the consumer. As a result, the brand will generate targeted brand communication, and facilitate consumer loyalty and brand value.

Consumer

J. Luxe

High-end Department Stores

Online High-end Department Stores

J.Luxe Website

Consumer

J. Luxe Distribution Channels

Promotion Mockups

Price

arkup Pricing – The first pricing option considered and the one selected for this analysis is the markup pricing strategy. Some assumptions were necessary to determine the cost price before the markup could be added. The assumptions related to the product cost: this analysis assumes the average material and labor costs to be reflected in Exhibit 1. The first section of the Exhibit 1 addresses the cost to produce each unit of our product. The specific costs include the luxury high compression, jade infused Lycra/nylon fabric blend that is the backbone of our product and represents the single largest raw material component cost. Additionally, itemized in our cost of goods are the resistance bands, ornamental jade stone which is affixed to the pant, and the cost to assemble the piece goods into the product itself.

The mark-up pricing model shown in the exhibit shows our wholesalers’ ability to acquire our product at $400 per unit and realize a healthy 100% mark-up over their cost. Our retail direct to consumer e-channels cost has risen from $110 a unit to $210 to account for the large aforementioned software, and marketing agreements we have with specialty vendors to achieve success in this segment. We still maintain a mark-up of 281% over the overall cost to produce and sell in this channel. The prestige pricing strategy also was incorporated as we are targeting the higher end of the current luxury active wear market. The appendix shows the strongest and most highly regarded brands asking upwards of $1,000 per item, and the lower priced luxury players like Monreal and Lucas Hugh coming in at $400 per unit. We targeted $800 per unit as a price to offer what we feel is a superior manufactured product in terms of durability, comfort, functionality, design and appeal. We are coming in under the market leaders in price as we realize we have to build brand recognition and haven’t yet earned the right to have the highest price in the market. We expect to offer even better products with higher prices in the future after we have proven our brand value with consumers.

Prestige Pricing – The second pricing option considered and the one used to determine the markup was prestige pricing. This pricing method assumes that customers will value the brand because they are satisfied with the technology and features of the product over the competitor’s product and perceive added value in its costs. This analysis also assumes that premium pricing allows J Luxe to capture brand value by creating an enhanced image of the company and its distinctive products. We have also projected first year revenue and expenses at a high level. The exhibit illustrates our go to market strategy initially using two channels to sell our product. The first channel is retail direct for J Luxe Online, where we will sell direct to consumers. The second channel is wholesale and includes high-end department stores and boutiques. These wholesalers will sell through their brick and mortar retail locations as well as through their websites, and mobile digital channels. A noteworthy dimension of the JLuxe cost and marketing strategy is the substantial budget we have allocated for digital marketing and promotion of our online store which can be accessed through web and mobile shoppers. We are prepared to spend $100 per unit to complete a sale as we promote the value of our new brand, and proactively reach potential customers through state of the art, high-tech lead generation, and customer engagement software and strategies.

Cost Analysis Exhibit

VI. Marketing Strategies

campaign we will reach our target customers and drive first time sales which will then allow us to leverage our loyalty program. Every customer that make a purchase will join our exclusive club where they will receive personal invitations to exclusive events and learn about and gain advanced access to our latest luxury products. J Luxe will explore and leverage loyalty partners who can create synergies and uplift in sales. Luxury spas and high-end health clubs will provide links to our website from selected marketing materials in exchange for the same from J Luxe and for a small referral fee. J Luxe will partner with select influencers starting with Blake Lively and Lauren Conrad to promote brand awareness through social media about our product. We will use twitter, Youtube, Instagram, LinkedIn and Facebook in exchange for a promotional fee and click through revenue share for purchases traced back to the influencers online properties. We will establish and promote brand ambassadors through our Twitter feed to attract Millennials. our target customers and drive first time sales which will then allow us to leverage our loyalty program. Every customer that make a purchase will join our exclusive club where they will receive personal invitations to exclusive events and learn about and gain advanced access to our latest luxury products. J Luxe will explore and leverage loyalty partners who can create synergies and uplift in sales. Luxury spas and high-end health clubs will provide links to our website from selected marketing materials in exchange for the same from J Luxe and for a small referral fee. J Luxe will partner with select influencers starting with Blake Lively and Lauren Conrad to promote brand awareness through social media about our product. We will use twitter, Youtube, Instagram, LinkedIn and Facebook in exchange for a promotional fee and click through revenue share for purchases traced back to the influencers online properties. We will establish and promote brand ambassadors through our Twitter feed to attract Millennials.

Luxe marketing strategies have been created to build brand awareness and both promote and reinforce premium product desirability and exclusivity of the companyâ&#x20AC;&#x2122;s distinct line of apparel. J Luxe will showcase product features and benefits across a wide range of communication channels as strategies for both online direct sales through the J Luxe website, as well as our wholesale to retailer marketing campaigns. Across all channels there will be consistency in rich content and beautiful images that drives sales and brand affinity to gain an advantage in all stages of customer experience. Owning J Luxe signifies that a customer is in a distinctive segment of society where exclusivity, style, and superior design intersect. Marketing Strategy - Promotion The J Luxe online direct sales marketing strategy is centered around a multi-channel digital media campaign. J Luxe will utilize income based geo-targeting for its state of art lead generation and customer database. The market we will target has shown a propensity to purchase luxury goods in our segment of the marketplace including those from our direct competitors. We will deploy our marketing campaign across all digital channels including email, text, online, social media, and mobile applications. Our target customers are known to be very digitally engaged. Promotional email campaigns will create a sense of exclusivity by offering digital perks to our customers who spend at a certain level. These exclusive offers will include time sensitive promotions targeted at compelling our customers to act with a sense of urgency. We will also use social media, search engine optimization, dynamic remarketing, and other frequently visited mobile applications to educate our target customers about the unique value proposition of J Luxe products. Education is a key component as research shows luxury goods buyers typically â&#x20AC;&#x153;stalk their preyâ&#x20AC;? and research items before making acquisitions. Content marketing will educate customers about the distinctiveness of J Luxe apparel by highlighting the superior material, fabric technology, innovative design, and functionality of product line and include offers to purchase at the end of each message. Through a well-orchestrated, proactive marketing

Marketing Strategy - Place

VIII. Conclusion

he J Luxe wholesale marketing strategy for retailers includes many of the assets and approaches we use in direct online sales, coupled with specific processes designed to aid our retail partners. J Luxe will provide rich content that promotes the sale of our product so retailers can quickly add our promotional material to their company websites and mobile applications. We will also assist our retailers in close range digital marketing techniques that allow retailers to make timely offers to customers while they are in store for purchase of our product. J Luxe will also execute a campaign targeted at getting in front of the buyers who purchase luxury goods for their stores. We will visit the buyers at their locations, attend trade shows, and employ the use of flexible co-op space at the garment vendor/clothing marts in Los Angeles & New York to show our samples and educate them on the value of adopting our brand.

In conclusion, we believe that focusing on the health and luxury lifestyle benefits of J Luxe activewear will benefit the company. Developing advertisements and promotions that emotionally connect with women who want to be the best version of themselves will increase the range of consumers J Luxe can turn into loyal customers and brand advocates. J Luxe activewear will empower women to lead healthy, confident lives and inspire other women to do the same. Offering luxurious and distinctive apparel which is comfortable and highly sophisticated makes staying active easier and more stylish. With J Luxe activewear, premium style leads to better health and a happier life.

Marketing Strategy - Price J Luxeâ&#x20AC;&#x2122;s target market consists of ultra-affluent women, ages 25 to 44, with an average annual household income of $350,000 USD or more. Due to such a broad spectrum, J Luxe will have generation and demographic specific marketing strategies, as previously mentioned in the prior marketing strategies, to effectively market to each cohort within the target market. Although the brand will have custom marketing strategies for different ages, J Luxe will price its products at a consistent rate, starting at minimum of $800 USD per pair of leggings. J Luxe will maintain relatively high prices to ensure that the brandâ&#x20AC;&#x2122;s reputation and brand image of luxury, exclusivity and sophistication remains pure. This price was determined through a product cost concept analysis considering the cost of materials, manufacturing and delivery costs, marketing costs, and accounting for unforeseen costs. After determining the product cost and calculating markup percentages, J Luxe set the price at $800 USD. J Luxe also conducted a market analysis of competitors pricing strategies, and decided to position itself higher than more accessible brands such as Monreal ($400 USD) and Lucas Hugh ($400 USD), but lower than more established brands with a longer luxurious history such as Givenchy ($1,050 USD) and Alexander McQueen ($900 USD). This positioning strategically places J Luxe in the middle of the market, offering more accessible products than the most exclusive luxury brands, but creates a more desirable, luxurious and unattainable appeal than the more accessible brands with lower priced products.

References