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