Lau Lok Yi N0776463
Fashion Brand Marketing and Promotion FASH30067
Nottingham Trent University School of Art & Design
2017 / 2018
Hong Kong Design Institute
ifb
Module: Fashion Brand Marketing and Promotion
ba
Module reference: FASH30067
IVE
Module Leader: CHAN, Marco
Module Name Declaration
This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed.
Should this statement prove to be untrue, I recognise the right and duty of the Board of Examiners to recommend what action should be taken in line with the University’s regulation on assessment contained in its handbook.
I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project.
Signed
Date (Word Count: _2853 words_)
(Full Name)
14-12-17
Lau Lok Yi
CONTENT 02 05
09
04
01
Executive Summary Situational Analysis
03
Market Targeting Marketing Strategy
Implementation Timeline
06
Conclusion
07 Appendix
08
References Photo References
10
Bibliography
Executive Summary
Fig. 1 PP OPENS IN MILAN, ITALY
A
s the summary, Philipp Plein has no marketing department in Hong Kong(Asia), the marketing campaigns would rearrange for the S/S 18 resort capsule collection of Philipp Plein. It includes the mega yacht VIP party, invitation card and press kit. P.1
Company Overview
P
hilipp Plein is founded by Philipp Patrick Plein in Switzerland in 1998. (JustAnotherNerdWithWords, 2017) Philipp Plein is a German designer. He produces exclusive furnishings in steel and leather first. He started made the accessories from the surplus exotic leathers, and both were sold abreast his design furniture at the trade fairs. (Plein, About the designer, 2017) According to the Philipp Plein Official History, he launches the first fashion collection in 2004. In 2009, the first flagship store was opened in Monte Carlo. Moreover, the first Asia showroom was opened in Hong Kong in 2011. Nowadays, there are over 120 PHILIPP PLEIN mono-brand stores and over 500 retail clients in the world. (Plein, History, 2017)
Fig. 2 Philipp Patrick Plein
About the brand identity, the brand logo designs in hexagonal with two P which uses the first letter of the designer's name. The positive and negative text as well as hexagonal logo design is refreshing. Fig. 3 Philipp Plein logo
P.2
Situational Analysis
T
he brand image of Philipp Plein is fun, provocative and always luxurious as well as the tribute to the vehement individualist. (Plein, Philosophy, 2017) In addition, the brand image from the fashion attitude of Philipp Plein. As Short (2016) claims,� [Philipp Plein] clothing, accessories and interior design collections interpret his version of the new contemporary luxury lifestyle.� (para.8)
Vintage military jackets which embroidered with Swarovski skulls is the brand signature product and the highlights of his early design.
Fig. 5 Croco & python leather jacket Fig. 4 Jacket with Swarovski skull
Also, the unique selling point of Philipp Plein is designed with Swarovski crystal and any types of animal skin such as python leather.
P.3
Company Overview
R
egarding the fashion show performance, as Allwood (2017) states that, Philipp Plein after his first fashion show in 2010 that he had earned the reputation for himself because of the most high-budget and outlandish performance such as featuring monster trucks, jet-skiing rappers etc. (para.5). The fashion show has the unique point every time and attractive.
Fig. 6 Monster trucks in SS16 Milan Show
Fig. 7 Harbour city gateway store
Fig. 8 Swarovski crystal skull
For the store design, all the stores have big Swarovski crystal skull in front of the door. The marble is the main design material as well as using dark furnishings. Moreover, the brand logo is everywhere that the customer would be impressed.
P.4
Situational Analysis
A
bout the packaging, the black paper bag with silver inner with brand logo is used to pack the products which would be made the customer impressed. Fig. 9 Black paper bag
Totally, the brand identity of Philipp Plein is fun, exaggerate and out of the ordinary. Philipp Plein fashion show, store design and using the animal skin to make the product etc. which is explaining we are unusual.
As the interview, the customers feel the brand is rebel, young, luxury and unique. However, most of the customer states that they do not think the store design match the brand image.
Fun, provocative, always luxurious and out of the ordinary are Philipp Plein want to let the consumer understand. Moreover, PP wants the customer to remember their difference such as their logo, their big Swarovski crystal skull decoration.
It seems that the customers perceive the identity and reflect the value of PP. However, something Philipp Plein did wrong like the store design as the customer does not think the design matches the brand. (Appendix 1-4)
P.5
Context
F
or the context, here is the PESTLE analysis of Philipp Plein. Currently, the international political situation is stable. Also, as the Hong Kong government is stable and no tariff problem so that Philipp Plein and customer are not influenced by the political factors.
In economic factor, the customer of Philipp Plein is the rich or high-income level employment, so the economic factors such as inflation of prices and the foreign exchange rate are not affecting them. In addition to the stock, the international stock market or Hong Kong stock market would affect their extra income. It may affect their purchase power.
For the social factor, Hong Kong is an international city which maxes the Chinese and Western culture as one, so it attracts many tourists to visit. In September of 2017, the total visitor is over 4.6 million and the same period of last year is around 4.4 million which grow 4.8%. And the 2017 total visitor until now is more than 42 million. (Partnernet, 2017)
Fig. 10 The latest general tourism statistics
P.6
Situational Analysis
M
oreover, according to the staff-Purple, more than 70% customer are from China in Gateway store. (Appendix 5) It seems that Philipp Plein of Hong Kong or conclude say retail industry of Hong Kong mostly depends on the tourists. About social media, the brand has many platforms to communicate with the customer such as Instagram. The designer would public his life and the new collection information etc. on his own account to attract the people follow him. Here is an interesting discovery, the numbers of the designer's followers are double of the company's official Instagram. It could find that most of the people follow the designer is wanted to understand his life, his values and thus to buy his design.
Fig. 11 Philip plein Instagram
There is nothing could affect Philipp Plein and customers from the technological factor. Concerning the environmental element, the geographical location of Hong Kong and weather maybe affect the buying decision of customer as four seasons clearly warm in Hong Kong that the customer maybe not to buy the parka or the jacket with fur.
Fig. 12 OďŹƒcial Instagram
However, most of the customers of Philipp Plein are the tourist. Perhaps they would come from Russia or Finland etc. and would buy it. Besides, there is nothing influence Philipp Plein and the customers from the legal factor.
P.7
Consumer
T
he first customer observation in the flagship store of Harbour City.
Fig. 7 Harbour city gateway store
Date
10-10-17 (Tuesday)
Time
1700-1800
Location
Shop G202-3, Ground floor and Lower Ground Floor, Gateway Arcade, Harbour City, Tsim Sha Tsui, Hong Kong
Number of customers
20
Male to female ratio
6:4
Age range
25-35
Foreigners and locals ratio
9:1
Findings
- Most of them a couple - 90% Foreigner customer - 2 males customer wearing P.P. jogging/jacket - They use other luxury brands like Louis Vuitton, Celine, Gucci etc.
Table. 1 Harbour City observation
P.8
Situational Analysis
T
he second observation is in Elements store.
Fig. 13 Elements store
Date
7-11-17 (Tuesday)
Time
1900-2000
Location
1013-14, 1/F, ELEMENTS, 1 AUSTIN ROAD WEST, TSIM SHA TSUI, KOWLOON, HONG KONG
Number of customers
5
Male to female ratio
6:4
Age range
25-40
Foreigners and locals ratio
9:1
Findings
- 3 male customer and 2 female customer - As I see at that time, most of the visitors are foreigner - Wear or use other luxury brands like Louis Vuitton, Gucci
Table. 2 Elements store observation
P.9
T
he last observation is in the flagship store in Harbour city, also the interview was held here.
Fig. 14 Harbour city store customer
Fig. 15 Harbour city store customer 2
Date
10-11-17 (Friday)
Time
1700-1800
Location
Shop G202-3, Ground floor and Lower Ground Floor, Gateway Arcade, Harbour City, Tsim Sha Tsui, Hong Kong
Number of customers
18
Male to female ratio
8:2
Age range
30-50
Findings
- Male more than female - Sometimes the customers visit the store as a group, three or four people - Foreigner customer more than local customer - Foreigners come with family or couple - Most of them wearing casual & sporty, some customers wearing elegant & trendy - Wear/ use other brands: Gucci, Ed Hardy, Alexander McQueen &Versace etc.
Table. 3 Harbour City store observation 2
P.10
Situational Analysis
I
n three-time customer observations and the customer interview (Appendix 1-4), Philipp Plein customers include 25-55 Fig. 16 Harbour city store customer 3
Fig. 17 Harbour city store customer 4
Moreover, the male customer more than the female. In the observations and the interview, the foreigner customer more than the locals could be seen. Some of the respondents are the loyalty customer. The average number of they visit the store is once or twice within three months and the average consumption of each time is around $20000. T-shirt is the favorite products of them. The customers like to buy Philipp Plein as they feel it is unique, rebel and young etc. Besides, some of the customer and respondents are using other luxury brands product. Also, the staff interview has been done and there are two staff were interviewed. (Appendix 5-6) According to the staff-Purple, most of the customers are from China. Among all the customers that around 60% is the male customers. Most of the customers are 28 to 40 but sometimes there is the customer who is around 50.
She heard that from the customer, Philipp Plein has a strong personality, different from other luxury brands. The design of Philipp Plein can express their views and values. Moreover, more than 90% customer has an intense loyalty to Philipp Plein. They would purchase again since the brand has same values as the customer. (Appendix 5) Moreover, the staff-Keith states that, the tourists are more than locals in the weekday. But in the weekend, the locals would more than the weekday as they do not work and some of them live in a nearby residential area. Four-Fifths customers of Elements are males and the average age of the customer is approximately 45 years old. He heard that the customer thought Philipp Plein so funny since using many crystals in the design, something exaggerated which is attractive. (Appendix 6) This is the initial customer research which can understand the real customer of Philipp Plein. P.11
Competitor
T
he competitors of us are Alexander McQueen and Rick Owens. Besides, Maison Margiela is the indirect competitor of Philipp Plein. Fig. 18 Alexander McQueen
Fig. 20 Rick Owens
In the observation, the customer is using Alexander McQueen items has been seen. About the interview, in addition to Rick Owens, some of the respondents claim that they would buy the product of Alexander McQueen or Maison Margiela. (Appendix 2-4) Since the brand image and the skull print is elegant of Alexander McQueen so the respondents like to purchase. (Appendix 4)
Fig. 19 Maison Margiela
The other is females who bought Maison Margiela for goes to work as she like its cutting and easy to mix and match. (Appendix 3) So, these three brands have been Philipp Plein competitors as they have some same or similar target area. Rick Owens and Alexander McQueen are the direct competitors of us who are target on the same consumer market and similar brand signature. Maison Margiela is the potential threat since the target market is similar.
P.12
Situational Analysis
T
he table below is the comparison base on the T-shirt.
- Menswear
- Menswear
- Menswear
- Menswear
- Womenswear
- Womenswear
- Womenswear
- Womenswear
Base on T-shirt
Base on T-shirt
Base on T-shirt
Base on T-shirt
$3300-$10100
$1900-$5500
$1500-$4000
$1200-4000
($7960)
($2000)
($2096)
($2150)
Material:
Material:
Material:
Material:
100% Cotton
100% Cotton
88% Viscose
100% Cotton
- Kidswear
With crystal
12% Silk
Size:
Size:
Size:
Size:
XS-5XL
XS-L
XXS-XXL
44-50 (XS-L)
Made in Italy
Made in Italy
Made in Italy
Made in Italy
Table. 4 T-shirt comparison table
Most of them have menswear and womenswear. Philipp Plein has extra kidswear. They use the similar or same material to produce the garment. Philipp Plein is the most expensive of all the brands. However, Philipp Plein offers nine sizes to the customer which provides more than other brands. P.13
Collaborators
P
hilipp Plein has the crossover with artist such as Los Angeles graffiti artist Alec Monopoly, they have teamed up on the capsule collection for the resort 2018 season. The main design is the outlandish and ironic graphics of the artist’s iconic Monopoly Man with luxury materials and fine Italian craftsmanship of Philipp Plein. They call this is LUXURY STREET COUTURE. (The Exclusive Capsule Collection, 2017)
Fig. 21 ALEC & Philipp
It is fun and provocative which would make some noise for Philipp Plein. The followers of the artist would pay attention and purchase it.
SWOT Analysis Strengths:
Weaknesses:
Strong brand signature: Swarovski crystal skull
No marketing department in Asia
Wide product range and size range
Not many promotions in Hong Kong
Over 120 mono-brand stores in worldwide
Price higher than the competitor
Designer have strong social media sense
No spokesperson
Located in Hong Kong popular area
Opportunities:
Threats:
In niche market that not many competitors
Too much emphasis on a single market
Promo/ads in traditional media
Competitors are more popular
Holding event in mall to attract the potential
Competitors product price affordable
customer
Less promotion than the competitor
Cooperate with celebrities to attract more customers
Asian economic was grown (China) expand these markets
Table. 5 SWOT table
P.14
Situational Analysis
F
or the SWOT, Philipp Plein has many strengths, we have the strong brand signature, provides wide product range and size range.
Moreover, there are over 120 mono-brand stores worldwide and located in popular area.
But, it has the deadly weakness. According to staff-Keith, Philipp Plein is no marketing department in Asia that lack the promotion that even VIP also did not know the new information of Philipp Plein such as store relocation. Therefore, there is less promotion in Hong Kong. (Appendix 6) Moreover, the product price is higher than the competitor. Maybe the customer who interested would difficult to make the decision. Concerning the opportunities, since Philipp Plein is a special brand that in the niche market, so it does not have many competitors. Also, cooperate with celebrities may be the other opportunities. Moreover, the Asian economic was grown that therefore Philipp Plein can expand those market. There are some threats would affect Philipp Plein future marketing plan. Philipp Plein is too much focus on the single market. Besides, the competitors are more popular and the price is more affordable than Philipp Plein. Also, the competitor such as Alexander McQueen has more promotion.
P.15
Market targeting Market Segmentation
F
or the geographic segmentation, we target on Hong Kong citizens. The target customer of PP in demographic segmentation is males and females, the age group is young adults and younger middle-aged which is from 20 to 49. However, the strongest we would focus on 25 to 35. Concerning their income, the customer is in upper high class and high class level. Educational level of them is in university level or above. Their occupation would be businessman or work in manager level. Moreover, according to Plein (as cited in Marshall, 2015), For example that Philipp Plein customer is a guy who plays football like Cristiano Ronaldo. The customer is in the 20s, drives a Ferrari, has diamond accessories and beautiful girlfriend. They do not want to wear Brioni which is boring and look like their lawyers, but they want something look expensive. (para.6)
Therefore, they are in a higher position of the social class and they are the individualist. Moreover, they have the unique personality for each. But, one is similar that they do not want to wear so boring or same with the other.
P.16
Selection & Target Market
A
ccording to Plein (as cited in Short, 2016), “I found a niche market with something special, strong and loud. With this niche, we created a demand and a market for our product.” (para.8) As Kendall (2009) states, "[Innovators] that actively seeks out new and different ideas, products and brands before anyone else." (p.72) They seek to be the "fashion forward". In addition, early adopters also considerably easily embrace the new ideas and products, they comprise around 15 percent of the population. Moreover, this group is willing to affect the others about the advantages of the new things. (Kendall, 2009) As per the above information, we know that Philipp Plein is an atypical character in the fashion world, so his customer is the little group of people which is fashionable and matches the innovators and early adopter of Roger’s Innovation Adoption Curve. Therefore, Philipp Plein targets the niche market which is the rich young people and who do not want to wear formal luxury brand. In the marketing plan, 25 to 35 years old male customers who are rich, style and value are same with Philipp Plein is the main target. Also, the same age group of female customers is the second target customer.
Fig. 22 Rogers Diffusion of Innovation
P.17
B
ase on the product and the brand, Philipp Plein and the competitors would be compared in two positioning maps.
Fig. 22 Rogers Diusion of Innovation
Fig. 23 Price and uniqueness positioning map
Fig. 24 Price and popularity positioning map
P.18
Market Positioning
This positioning map is compared with price and uniqueness which depend on the T-shirt comparison table of 2.4 Competitor. Philipp Plein is the most expensive of all brand. However, it is the most unique since the product made by animal leather and Swarovski crystal etc.
This positioning map is compared with the price and popularity of the brand. Philipp Plein is the most expensive. However, according to the interview and observation that, Philipp Plein is not the popular since it is targeting the niche market. Alexander McQueen and Maison Margiela are more popular. The positioning of Philipp Plein is high class and unique casual wear does not influence by the other.
P.19
Market Strategy Marketing goals
S
ince Philipp Plein is classified as the new brand developing in Hong Kong, we are in the introduction and growth state of the brand life cycle. Therefore, the marketing goal is to introduce our brand value to the customer and state our uniqueness. Moreover, to inform them the new collection is released.
Fig. 25 Brand Life Cycle
P.20
Marketing Mix Product
P
hilipp Plein provides menswear, womenswear and kidswear. We would focus on promoting the menswear and womenswear of the crossover capsule collection in resort 2018 this time. The new capsule collection of resort 2018 crossover with Renowned Los Angeles graffiti artist Alec Monopoly. The exclusive capsule collection constitutes of T-shirts, cashmere pullovers, leather bomber jackets and backpacks etc.
Fig. 28 Resort 18 Women 1
Fig. 27 Resort 18 Men 2
P.21
Fig. 26 Resort 18 Men 1
Fig. 29 Resort 18 Women 2
Marketing Mix Price
Fig. 33 PP x ALEC
F
or the price in the resort 2018 capsule collection, The products such as T-shirt around $5000 - $10000. The backpacks are more than $20000. Besides, the jacket is around $15000 $50000. Fig. 30 PP x ALEC T-shirt Fig. 31 PP x ALEC backpack Fig. 32 PP x ALEC biker
P.22
Marketing Mix Place
T
he whole collection would arrival in all Hong Kong store and online store.
Fig. 34 Elements store 2
Fig. 35 Harbour city store 2
P.23
Promotion
Fig. 36 Popup store with ALEC