MARKETING PLAN
YESHICA INDRA FASHION BUSINESS 2.2
16
MARCH
2011
CONTENTS I. INTRODUCTION II. EXECUTIVE SUMMARY III. SITUATION ANALYSIS a. Company analysis b. Costumer analysis c. Competitor analysis d. Collaborators e. Climate i. PEST analysis ii. SWOT analysis IV. MARKET SEGMENTATION V. ALTERNATIVE MARKETING STRATEFIES VI. SELECTED MARKETING STRATEGY a. Product b. Price c. Distribution (Place) d. Promotion VII. SHORT AND LONG TERM PROJECTIONS VIII. CONCLUSION
I. INTRODUCTION Greene is a brand that holds strong beliefs in making a difference – not only to the costumers but also on the environment. For this reason, it seems suitable for the brand of active wear to expand to the world of organic clothing. This plan allows us to analyze into the insight of the brand’s business, background and recommended ways to expand from our present costumer base conditions.
II. EXECUTIVE SUMMARY
Fueled by a sense of concern of lack feminine sport wears, Greene was founded. In 2008, Greene started off by opening a small concession brand at local department store, Sogo. We make products that last and debunk notions that active wear fashion can’t be both sporty and feminine, promising the balance of style and performance. Combining organically grown and recycled fabrics, Greene is the first choice for fashionable organic active wear. Since that point, the company has rocketed to have our own boutiques across Jakarta, but also still holding concession stands in department stores and have highly established online shopping website. Our business had overcome various obstacles and grown rapidly in the past four years. We are projecting that by this plan, we increase sales and revenues by perhaps 15-‐25% percent the least by creating awareness to current returning customers and to generate an average of 15% of new customers within the next year.
III. SITUATION ANALYSIS A. COMPANY ANALYSIS Goals To inspire women to find empowerment through fitness.
Focus Our company focuses on giving costumers the ability to own organic active wear clothing by: Cotton and Bamboo grown without pesticides that don't involve the use of harmful chemicals and bleaches to color fabrics—are made to last, so that people keep them for longer.
Culture We are a pioneering company which aims to make a lasting contribution based on moral awareness and ethics. In while making clothes that take into account the environment, the health of consumers and the working conditions of people in the fashion industry.
Strengths Strong well-‐established brand concept Good distribution through the country and department stores Strong costumer relationship High quality products Strong relationships with distributors. Excellent staff who are well trained and customer attentive. An efficient, stylish retail store.
Weaknesses Specialized product, does not appeal to everyone Products limited to women only Depends strongly on loyal customers
Market Share A high penetration of the luxury women’s active wears market
B. COSTUMER ANALYSIS Number
The number of our costumer all across Indonesia is 250.000 people and growing.
Type GEOGRAPHIC Consumers generally reside in urban areas and large cities within the Special Administrative Region of Jakarta. Demands for image will be stronger in heavily populated areas so creating a higher demand for stylish clothing.
DEMOGRAPHIC Products are made for women only and appeal to a wide range of consumer ages, although mostly attract those of aged 20-‐40s as clothing are slightly more hip. Their income will generally be mid and above-‐range as garments are slightly more expensive than the non-‐organic finished products.
PHYSCOGRAPHIC Research shows that consumers have shown a rise in global awareness, which is becoming a part of their lifestyles. Our costumers must have a keen interest in living a healthy and active lifestyle such as enjoys activities such as yoga, Pilates, dance, aerobics, swimming, going to the gym, etc and will generally be eco-‐conscious and promote green living
BEHAVIOURAL Greene tends to have a following of loyal customers as they offer exclusive promotions and campaigns for returning buyers, which creates an attachment to the brand.
Value Drivers
Beliefs of a healthy lifestyle, as they are the companies’ core values.
Decision Process
People will look for the right combination of style + performance which we promise.
Concentration of costumer based for particular product The best selling product of our company is basic seamless sports-‐bras, leggings and layer tops that are originally targeted for yoga and Pilates wear but can also be opted as leisure wear.
C. COMPETITOR ANALYSIS Market Position Fashionable
GREENE
PUMA
NIKE
Pricing
The clear difference between Greene and it’s competitors is that they pride themselves on being unique in the sense that they offer a wide range of products which not only perform during sporting activities but also hold a strong sense of style, something that is not easily found amongst its competitors. Although we overcome with the issue that we are not as well established as some international active wear brands. Nike Mid-‐range products Fairly basic designs and styles Good on performance Do offer a mid-‐sized selection of organic clothing, although not well known
Puma Mid-‐range products Fashion ability over performance Only offer selected men’s organic t-‐shirts Offer designer collaborations
D. COLLABORATORS Suppliers: The growing popularity of the brand means we establish a secure supplier who can meet our growing demands. Also, still being a small company we make sure suppliers won’t raise prices on products. Distributors: The Company has an advantage of selling their products independently from store, by online and also secured concessions in Metro and Sogo. Subsidiaries: Currently we have no second line under our brand. Joint ventures: We too offer external brands on our store such as Speedo, Havaianas. and FitFlops.
E. CLIMATE I. PEST ANALYSIS Political A shift in government policies on shipments or manufacturing laws, may affect the company.
Economic A rise inflation will increase sales price that may decrease or has no effect on overall sales. A decrease in unemployment rates could mean decrease in disposable income, resulting in a possible decrease in sales.
Social Global warming and environmental issues can create a demand for natural product and increase sales but also invite new entrants and competitors. The attitudes of people towards health are not constant and can cause an increase in sales and demand.
Technology The company has a well-‐established online shopping site and the increasing popularity of online transactions could force the company to adapt and update our website.
II. SWOT ANALYSIS Strengths Quite a rare market – being an organic and active wear for women. Good distribution through independent and department stores. Strong costumer relationship. High quality products. Strong relationships with distributors. Excellent staff who are well trained and customer attentive. An efficient, stylish retail stores.
Weaknesses Specialized product, does not appeal to everyone. Products limited to women only. Depends strongly on loyal customers. Slightly costlier being an organic made product.
Opportunities Open more branches all across Jakarta. Collaborate with a well-‐established designer. Men and children’s line. Advancements for online site. Further development of existing products.
Threats Entry of new and similar competitors. Larger and more established brands may begin to sell similar products. Changes in costumer’s lifestyle and habits. Non-‐organic products hold the same functions.
IV. MARKET SEGMENTATION Our market share is a high penetration of the luxury women’s active wears market. The market for women's fashion is a strong, steady growing market but with too many competitors in women’s wear fashion, Greene separates ourselves with the small growing market of female active wears. It is generally may not be affected by economic downturns as it is not a primary needed product but quite a high quality product. Women seem to consume fashion regardless of the economic climate. While might not be entirely accurate, women love their fashion and cannot seem to get enough.
STRATEGIC MARKETS Athletic Our business meet the standards and high quality that the professionals seek. These include athletes that pride the look and performance of the product or people who looks for durable active products.
Leisure The comfort quality of our product also lets people to opt our products as leisure wear and although this is not our target markets, this market contributes much to our product sales for basic apparels such as tops, leggings and sports bra.
PRICE SENSITIVITY All products will be priced competitive to the urban Jakarta market. Although our products are mid-‐range and they retail higher than the normal non-‐organics, our garments create an emotional attachment to our costumers as they give a sense of ethics.
V. ALTERNATIVE MARKETING STRATEGIES 1. 2.
SOCIAL NETWORKING PROMOTIONS SPONSORING VARIOUS GLOBAL EVIROMENTAL AWARENESS EVENTS
3. 4.
ENHANCE WEBSITE OPEN BRANCH STORES AT THE KEY PLACES TO TARGET MARKET’S
5.
OFFER FREE ONLINE HEALTH BLOGS PROMOTING HEALTHY LIVING CAMPAIGNS FOR COSTUMERS
6.
DISTRIBUTE FLYERS, CATALOGUES, ADS TO YOGA, PILATES, AND DANCE STUDIOS, CLUBS AND FITNESS CENTERS
7.
ONLINE NEWSLETTERS TO LOYAL COSTUMERS PROMOTING NEW RANGE AND EXCLUSIVE DISCOUNTS
8.
IN STORE ADVERTISING
9. 10. 11. 12.
FASHION SPREADS AND ADS GIFT VOUCHERS SPECIAL OFFERS FOR MEMBERSHIPS WORK TOGETHER WITH FITNESS CENTERS, BANKS OR DANCE STUDIOS AND OFFER FASCINATING SHOPPING DEALS
VI. SELECTED MARKETING STRATEGY A. PRODUCTS
We establish the ability to understand our customers and connect with them and emphasis in the balanced combination of style + performance, of sporty +feminine.
APPARELS Our organic apparels are made of 100% cotton, bamboo or hemp grown without pesticides that don't involve the use of harmful chemicals and bleaches to color fabrics. We offer apparels ranging for activities from swimming, gym workouts, running, yoga, Pilates, dance, tennis, beach, walking, and even a special line just for pregnant women. And under those categories costumers can find products such as jackets, bottoms (skirts, leggings, skorts, trousers), tops, bras, vest, swimsuits, bikinis, cover-‐ups, and socks.
ACCESSORIES We also provide a variety of fitness accessories such as trainers, goggles, bags, mats, water bottles and towels. But these only can be found on our store, as they are not available at our concessions stands at department stores.
B. PRICE We are offering the best quality of organic fibers for prices that are affordable to our target market, which most likely would still be getting disposed income. Our apparels retails in the range of IDR 100.000 – 1.000.000 above for various tops, jackets, sports bra, cover ups, swimwear and vests.
C. DISTRIBUTION (PLACE) Our stores are available at malls such as SENAYAN CITY AND EX. For reasons that consumers generally reside in urban areas and large cities demands for image will be stronger in heavily populated areas, creating a higher demand for stylish clothing. These malls have a gym that in effect would boosts the sales of our products. Products are arranged into categories, both in store and online, making it easy to find the product costumers are looking for and which activity they are looking to partake in. We also do offer our products through the small concession stands for the apparels we have at department stores of Sogo and Metro which are located at malls such as PONDOK INDAH MALL AND PLAZA SENAYAN.
D. PROMOTION Marketing strategies for 2011 will be an overall continuation of Greene’s advertising and promotion methods. At present we depend on the use of online promotion, in store advertising, social networking, newsletters, memberships and general magazine coverage. These have all been successful ways for to raise brand awareness. For this reason, we will add more by ways of: -‐ The distribution of catalogues promoting the new range of organic active wear and also offering a discount when flyer is presented during a purchase. -‐ These catalogues will be distributed to yoga, Pilates and dance studios, clubs and fitness centers within range to the Greene stores. -‐ Online newsletters to loyal customers promoting the new range and offering an exclusive discount (higher than given to regular customers) when purchasing items. -‐ In store advertising, including visual merchandising and knowledgeable staff -‐ Online promotions; creating a health blog that promotes healthy living for costumers. -‐ Offer exclusive memberships for loyal costumers -‐ Work together with Fitness centers -‐ for members of a certain gym get a 30% off our stores by showing their fitness membership card.
VII. SHORT & LONG TERM PROJECTIONS • • •
• •
To generate a minimum 15% -‐ 25% growth in overall sales and revenue for the company in the year. To increase sales of apparels by 30% in the next 12 months. To create awareness to current returning customers and to generate an average of 15% of new customers within the next year To maintain and increase the current market share. To make Greene the first choice for fashionable organic active wear for women.
ASSUMPTIONS Our projections are based on the assumption that the economy, consumer spending habits and population growth in Jakarta will continue for the future. 1) Inflation will remain at 3 per cent in 2011, rising to 4 per cent in 2012 and 2013 2) Interest rates will remain in the range of 5 to 6 per cent over the period of the plan. 3) Company wage increases will not exceed inflation over the next two years. 4) Suppliers will continue to sell inventory to us at prices that allow us to maintain our margins
GREENE SALES FIGURES (Historical and Forecast)
SALES AREA: YEAR (values 000,00)
in
ALL
Rp 2008
2009
2010
forecast 2012
2011
2013
APPARELS ACCESSORIES
1,105,750 945,700
1,117,830 963,200
1,125,650 1,120,820
1,129,230 1,201,910
1,142,230 1,314,200
1,152,660 1,389,190
TOTAL
2,051,450
2,081,030
2,246,470
2,331,140
2,456,430
2,541,850
VIII. CONCLUSION From the data collected and taking into consideration the opinion of current Greene customers, the current need for organic clothing within the organic wear market and the steady increase in global awareness, it seems that our collection will not only benefit the company in accomplishing their hopes of becoming a successfully sustainable company but also aid in an increase in sales and revenue and generate new relationships with a clientele who share beliefs of a greener world.
APPENDICES
Our latest set of accounts is included in the appendix together with further analysis of our: • • •
•
Sales areas and key applications Profit margins Breakeven analysis Catalogue draft