Marketing project for Acne

Page 1

Marketing project by Selezneva Elizaveta


Structure -

Intro: 1. Product 2. Brand info 3. Competitors

-

Basic: 1. Strategy 2. SWOT analysis 3. Market choice 4. Consumer analysis 5. Price calculation 6. Promotion

• Conclusion: 1. Marketing plan 2. Promotion Activities 3. P&L analysis


Product • Beryl patch is a modern interpretation

of the classic cardigan. It is a solid color knit on the front and sleeves with a contrasting silk back panel. The neckline, cuffs, button placket, and hem are ribbed, and the shoulder seams are left exposed. Closes down the centre front with hand sewn, black silk covered snap buttons. There are two contrasting silk flap patch pockets on the lower front.

• 45% Virgin Wool, 25% Wool, 30%

Polyamid. Back Panel in 100% Silk


Product



ACNE • Founded in Stockholm • First full collection was launched in 1998 • Production in china • Aims to produce all products as responsibly

as possible, so they also collaborate with Fair Wear Foundation.

• Distribution in the Europe, New York and Sydney and Melbourne


Competitors analysis


Competitors analysis


Competitors analysis


Strategy

Cooperation strategy

• To buy product in ACNE company • To distribute product from Sweden to Russia (Moscow)

• Sell the product in a multi-brand store


SWOT analysis Strength • knowledge of russian language and culture

• possess of a product with inviting design

• because of the climate conditions wool knitted clothes are in demand

• product has a good quality • has a hight customer perception in countries where product sells

• well competitive

Weakness •

high competition in the market

• doesn’t known by russian consumer

• product isn’t very popular at summer.

• absence of distribution experience


Market choice Moscow, Russia Moscow

St. Petersburg

Population

2010 - 10495

2010 - 4508

2007 - 10452

2007 - 4553

Percentage of middle class

20Â % (2099)

14,6Â % (658)

Per capita income (in 1 month)

832 euro

442 euro


Consumer analysis Quantitative indicators • • • • • • •

per capita income of 2009 $ 15 100 per capita income of 2008 $ 16 300 purchasing power $2.11 trillion total population 140 041 247 (15-64 years 71,5%) Literacy: 99,4% urbanization -0.5% House holds income by percentage share: lowest 10% - 1.9%; Highest 10 % - 30.4%


Consumer analysis Qualitative indicators

• • • • • •

Moscow market (10495 mill. population) Consumer: Age 20-50 Income: medium - high Color taste: light - dark colors Buying period: preferably fall, winter, spring Location buying: brand/multi-brand stores


SWOT Opportunities

Threats • possible extra expenses (corruption)

• Colors of the product is very popular for that market

• In moscow population, women on 10% more than men, so more potential consumers

• doubling of domestic price due to expenses on importation in russia

• comparing to the

competitors Acne isn’t perceived as a very hight quality of product


Price calculation at international level

• • • • • • •

Export price (FOB) = 173 euro Transportation (about 10%) = 17,30 Export price (CIF) = 190,30 Customs Duty = 6,92 Distribution cost = 171,27 190,30 + 6,92 + 31,14 + 171,27 = 399,63 Therefore Total cost and selling price is = 400


Price calculation at company level

• product cost - 400 euro • the total selling price - 480 euro • price markup - 20 %


Promotion • Advertising in local medium level magazine (Glamour, Liza)

• the price 1/3 page Glamour - 4 615, Liza - 5 000 euro

• Participation in a local exhibition • “International fashion fair” in Moscow, which will cost 13500 euro

• Internet advertising


Marketing plan • The product are going to reach 20% of

population with a middle level of income (2 099 mill.)

• With minimum income 840 euro • Via cooperative strategy • Product will be sold for 480 euro


Promotion activities • With the advertising in the internet and

magazines we’ll able to introduce our product to the market (at least 40% of our customer segment)

• Participation in the “IFF” will introduce as to our clients and future buyers


P&L analysis Gross profit One portion of 25kg import 125 cardigans (1 per 0,2kg)

480 euro

10 portions of 25kg will import 1250 cardigans

600 000 euro

VAT (18%)

38 925 euro

EBTx

561 375 euro


P&L analysis Promotion activities Ad 1/3, Glamour magazine

4 615 euro

Ad 1/3, Liza magazine

5 000 euro

Participation in “International fashion fair�

13 500 euro

Internet advertising

130 euro

Total

23 245 euro


P&L analysis Distribution expanses Export price

237 875 euro

Distribution cost

222 737,5 euro

Total

460 612,5 euro


P&L analysis Fixed expenses Office for 1 month

1 795 euro

Salaries

2 000 euro

Extra expenses

3 000 euro

Total

6 795 euro


Marketing plan P&L analysis Final calculation EBTx

561 375 euro

Promotion activities

23 245 euro

Distribution

460 612,5 euro

Fixed expenses

6 795 euro

Profit

71 122


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