Fashsion Marketing DESN5300M Yu Yu Hsu, 201183219
Figure 1,
Marketing Plan for Mangoextend product line with valeurabsolue, branded as
MangoValue
Figure 2.
content execute summary Brand Over View - brief - business strategy - current 4P - current situation Research - macro trend - micro trend - competitors analysis - customer analysis Aims & Objective Market Mix - product - price - place - communication - time plan Growing Conclusion
executive summary executive summary Starting with an outline of brand’s background, current market mix, strategy . The report is focus on exploring the brand’s current situation and offer a comprehensive marketing strategy for the growing opportunity. Research into the global fashion retail market, found out Mango has less market share over its competitor although it’s plan on expansion worldwide. The reasons includes the higher price but not considered fashionable among customer than Zara, and fierce competition of variety among lower price range of H&M. Result in an ambiguous brand position in the market. The purpose of this market plan is to reposition the brand to extension of pioneer product line among current competitor, and will increase customer’s awareness and obtain more brand equity.
Figure 3.
1.1 introduction
Mango MNG Holding is known as global fashion retail brand based in Spain. It is founded by brothers Isak Andic and Nahman Andic in 1984 in Barcelona . The brand’s concept is to expand globally in all continents. Thus, they used to adopt franchises system to speed up the present in international market. Their products are flavouring trendy male and female who lives in the urban. Offering clothing and accessories to fulfil their daily need. Concept, team and system are the three foundation throughout the brand’s value. The brand’s concept on ‘ To be present in every city in the world’ and ‘dressing urban, modern women for their daily challenges’. Is carryout by professional teams in the organization and utilize franchise concept to reach their goal in increase their global presences. (MANGO, 2015)
evolution At the initial stage, the company’s target customers are urban women who is style conscious and can afford middle-high price of fashion products. Since 2008, the group had set up new collection to target young, fashion-conscious men. In 2013, with the concept toward multi-brand store, MANGO Kids and MANGO Sports& Intimates was launched, following the new plus size collectionVIOLETA by MANGO in 2014,and subsequently set up BABY line from 0-3 in 2015.
market performance Compared to the financed closed in 2016 with 2.26 billion euros and 77 million euros, MANGO Holding returned to profit in the 2017 closed fiscal year with sales of 2.194 billion euros and an EBITDA of 115 million euros. The growth is contributed to the rise of more than 30 million euros in the EBITDA compare to the previous year 2016 of 77 million euros. (press@mango.com, 2017)
Figure 4.
1.2 business strategy According to the Executive Vice-Chairman of MANGO, Daniel Lopez, stated in 2017, the group has implanted a more ambitious fast-fashion strategy to react faster and more efficient to satisfied market needs. And the transformation of business model in optimization of omnichannel selling by consolidation of new store format(megastores), in housing all their collection ranged from women to men and kids. Aims to satisfied customer’s need in more product range, at the same time increase the Group’s profit growth. (MANGO, 2015) In 2017, the expanded of business line includes performance of Man, Kids and Violeta were key factors stimulate the growth of revenue, responsible for 18.3 percent of total turnover, compared to 17.6% in the previous finance year. (MANGO, 2015)
franchise strategy The concept of a global brand is the key factors stimulate Mango’s sustainable growth. Since 1992, Mango's rapid growth and expansion in the global market is closely related to the application of franchise strategy. (Salerno, 2011). The benefit of franchising allows the brand to overcome culture and administration barriers outside EU, expand rapidly through international markets without taking on store ownership costs such as distribution, marketing and operation. The franchiser should support the franchisee in meeting the commercial terms previously negotiated.(FEDERATION, 2010)
Figure 5.
current marketing mix
product Mango’s product is based on original, fashionable design of urban products includes quality clothing, accessories, bags and shoes. The design is simple, dynamic in line with the brand’s image of Mango.
price
place off-line- megastores expanding online- in 83 countries multi channel- consolidate online & offline , such as the design of scan&shop service on their app by AR technique
Figure 6. Scan&Shop app(Hendriksz, 2014)
with better quality, price range is medium to high compare to other brands. 10% of Zara’s, and 4% of H&M
promotion swift from tradition printing campaign to more digital activities&supply chaing. Began in s/s 2016 update digital pressrelease every two week of brand’s latest news when new product being in store every two weeks. (Smith, 2015)
Figure 7., percentages represented by fashion edited, comparing each retailer’s price bracket. (Smith, 2016)
Figure 8.
current situation low market value in global market throughout the year Although Mango utilize franchise system for their expansion strategy to adapt fastky in international market. And the franchise company has account half of the market growth, However according to Euromonitor’s market insight, Mango’s market value is low over the year from 2013-2018, which only gain 0.1% of retail value. It will need to have competitive advantage to differentiate themselve from the field or they will be always chasing other’s footstep.
Figure 9, Mango's retail value(Euromonitor, 2019)
Figure 10.
lack of competitive advantage in digital marketing activities Meanwhile, the engagement on social media can be a statistic for brand to overview on their target customer’s brand awareness. However, during a period based on a week between April,21th,2019 and April,28th,2019, Mango has less customer engagement than competitor -Zara. Where Zara has 1.1M likes by contrary Mango only gains 228.4k likes in Instagram. (SPRINKLR BUSINESS INDEX, 2019)
Figure 11, Mango v.s Zara's content engagement (INDEX, 2019)
Aims & Objective
1.3 Aims & Objective aim To increase the visibility and presence of Mango
objective Diversification of new product line in women category in order to further bolster the brand as the complete lifestyle brand. Adopting new strategy that is not following their current competitor Zara’s footstep Strengthen customer engagement on social media
USP Collaboration with Green fragrance company, providing aromatherapy product, to have healing and de-stressing properties.
Figure 14.
2.0 strategic positioning
2.1 macro analysis
Figure 12, interactive retail display (Minkoff, 2014)
Figure 13, Global Natural Fragrance Market (TMR,2016)
2.2 micro analysis
Strength
Weakness
Launch in own store can benefit from strong brand image Location at big cities, high footfall areas benefit them to target higher earning and upper-middle earning category. Mega store strategy enable new category be presented in store The plan in increasing store space, allows new product line be presented in a desire atmosphere which will enhance instore experience
Leading brand already well-known High failure rate of new cosmetic product The ability to registered trademark is complex and difficult Customer need time to be educated the value of natural fragrance , in contrary to brand-oriented buying behavior
Threat High cost of natural materials is a barrier to the market as a whole compared with the production of synthetic materials Customer’s disposal income might change during the future
Opportunity New fragrance line department offered will appeal to company’s current target segment: urban stylish women Consumer may be willing to pay more on natural, environmentally friendly products as long as it reduce the use of synthetic chemical. New in-store experience of testing on olfactory senses might create a buzz
Figure 15.
As our goal is to differ ourselves from current competitors: Zara, H&M by distributing a new fragrance line. The first instore launch will be at Spain’s megastore with the concern of unpredictable market reaction. Meanwhile, our competitor will be those fragrance brand that is currently leading in Spain’s fragrance market.
2.3 new competitor analysis
Overall, MangoValue different ourselves from the above brands either prestige fragrance or mass market. The brand offers niche fragrance that is 100%natural, based on historically scents and uses of natural ingredients, such as herbal and floral scents to respond on consumer’s demand in aromatherapy which produce feelings of calmness and relaxation.
Figure 16.
2.4 Consumer Analysis
3.0 Market Mix Figure 17.
Figure 18. valeurabsolue
Figure 19. valeurabsolue
product
3.1 Product
Figure 21. valeurabsolue
With the collaboration of Valeur Absolue the new natural ingredient fragrance line will be established align with the wellness and environment friendly trend. The combination of essential oil and extracted plant is to sublimate a basic emotion in woman’s life. The influence of aromatics or natural odours on human psychology and stone therapy on our health are the value of our product. Lighter and intense scents are two separate product groups, and four scents in each group. Lighter scents includes harmonie, joie-eclat, sensualite, and vitalite Intense scents includes confiance, harmonie, rouge passion and serenitude
Figure 23. valeurabsolue
Figure 22. valeurabsolue
Figure 20. valeurabsolue
We will adopt the value-added strategy which the premium product offers is differentiate and allows higher price. The value lies in the innovative natural fragrance not only offers odourless scents and it also alleviates our stress. Features includes natural ingredients extracted from immortelle flowers instead of chemical produced or from extinction creatures such as the Musk Deer. And the essential elements in the ingredient could impact on our nerve system and further enhance our mood. Base on above value, price will follow with the fragrance brand Valeur Absolue offered, 50 ML - 59.00 ÂŁ / 100 ML- 79.00 ÂŁ
Figure 24.
price
3.2 Price
3.3 Place
Megastore The space to demonstrate our MangoValue will have a nature relax atmosphere, making our customer feels like home, which is coherent to our self-care product. The entire vision is a sophisticate, feminine environment with a fresh, elevated concept of a boutique aromachology." Figure 26.
Online Channel The new product line will add at “Edit” section which will be highlight from essential collection. It is going to named “ A mood to select“ in Women’s category. The online present is differ from mango’s current feature of short film insert in look book. On the contrary, it will be present in a gamify way to attract visitors interest. To invite customers choose between series of either-or images, and our system will give recommendation of which outfit and perfume best compose with their frame of mind. The goal is to touch the psychological part of user’s journey, to make recommendation based on reaction of emotional stimuli.
Multi channel
Figure 25.
place·
creates a positive impact on complementary the disadvantage of off-line accessibility and the limitation of online tangibility. (Ko & Chun, 2017) With the touchscreen installed instore, it will create customer’s instore experience, brand can collect useful data related to customer's preference, the gamify mood interact select journey will make new product line more easy to distribute to customer. Customer can try instore for the smell and choose to purchase directly through the digital screen.
3.4 Communication
advertisement Mango used to apply celebrities endorsement with their new launching, such as Kate Moss. However, most of their customer find irrelevant and won’t stimulate their action. In fact, millennials distrust this strategy because it does not belong to the group's preference for authenticity and relevance in marketing.(Kirkpatrick, 2017) Base on this marketing observation, MangoValue will emphasize on the product itself by shooting some photograph which give a sense of sophisticate, feminine, simplicity atmosphere. The adverts will be released through print and digital format with attached QR code for potential buyer to scan and review to our website. It will set on billboards where high footfall areas at the center locations, such as buss stations, underground, where our target audiences can easy perceived when they travel daily through these areas. The adverts will also be shown on feminine magazines such as Vogue, Elle which allows MangoValue directly exposed to target customer.
Newsletter The newsletter system is where Mango can directly send message to their target customer. Mango has been using this strategy quite often, according to Mailchart (2013) from New York, Mango sent 27 mails in 30 days during a 2015 April Report. MangoValue will also levarage this system to gain exposure. The subject is titled as #amoodtoselect, inside the content will feature a slide with series of mood images with the hashtag at front, by clicking the hashtag, will link our customer directly to the webpage and start their gamify user experience online. Free sample will be offered for existing customer and new subscribe customer once they purchase any product from Mango, the gift fragrance sample is based on the result over their selected mood. Overall, it will give opportunity for sales growth and win brand awareness.
Launch event Mango will collaborate with Valeur Absolue to launch an event in one of the shopping mall in Spain. During the event, Valuer Absolue will introduce the invention of this new premium fragrance, whereby visitors can be more familiar and persuaded by the product. As the whole event involve with the idea of self-wellness. We will invite aromatherapist to join our event and give some skills on self-massage. With the product itself features different colors of stone in the perfume, we will install colorful walls for our fans to take photos with their giveaway sample, an activity will be arranged by random draw lots from visitor sharing photos on instagram with hashtag #amoodtoselect. After the events, three chosen lots will have chance to join spa program from head to toe using the essential oil treatment provided by MangoValue in the program.
Figure 27.
#aMoodtoSelect Pop-up Store x Social Media- Social Currency While Mango realize the importance of two-way communication with its customer by posting content and generate share, like value on social platform. Whereas, it still lack of competitive strength with Zara. Regarding this , MangoValue will be promoted in a creative way to increase our customer’s engagement on social media platform. This campaign will be a pay for product using social media posts as their currency. The pop up stores will be located at Spain’s newest shopping mall, where millenials tend to be there. To enhance visitor's in-store experience, digital technology is the key elements. From this point of view, our pop up stores will feature two touch screens to attract visitors and allow them to interact with the digital device. The content of the touch screen featured the same of our web page design. Including series of either-or images to select and recommend fragrance will be offered to our fans. Visitors will award recommended fragrance sample once they snap photos or post message with the hashtag #amoodtoselect & #MangoValue through twitter, Facebook or Instagram. As embracing social currency , visitors can walk out with products in exchange by social sharing instead of money, this tactic is a mutual benefit and increase efficiently of customer engagement on social media.
3.5 Time Plan of Campaigns The new launch of product line will be implemented over a 12-month period, with series of promotion separate to pre, during and post lauch.
newsletter email to individual & press released to press
Pre Launch photo shoot for billboard and online store image
Post Launch sample kit release on-line and off-line
collaborate with valeurabsolueto launch event
During Launch set up pop-up store
Growing Opportunities Expand our product range from personal use to other of olfactory products, such as home spray, candle, soap, car air fresher Set up our fragrance collection to the mega stores worldwide, such as Europe, US Launching fragrance workshop worldwide, offer perfumery service, enable our customer to experience of finding inspiration, inclination and impression to make their personal scents.
Conclusion Over all, the collaboration with Valeur Absolue to develop high-end fragrance will differentiate Mango from current competitors. The extension of new product line in existing market will boost brand awareness and increase other product lines’ sales. The launch of natural fragrance will increase brand loyalty. Owing to our target customer-millennials are the most conscious buyer in the recent year, they are motivated by green products. Accordingly, MangoValue will be a catalyst to improve the brand’s performance. Moreover, natural fragrance is align with Mango’s commitment collections to protect the environment, and ultimately obtain brand equity.
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Image Reference Figure1. Mango [Online]. 2019. [Accessed 26th April 2019]. Available from: https://shop.mango.com Figure2. valeurabsolue [Online]. 2019. [Accessed 26th April 2019]. Available from: https://www.valeurabsolue.com/en/ Figure3~5. Mango [Online]. 2019. [Accessed 26th April 2019]. Available from: https://shop.mango.com Figure6 Scan &Shop app, HENDRIKSZ, V. 2014. Mango implements Scan & Shop function via mobile app [Online]. Available: https://fashionunited.uk/images/2014/r/810/mango-pp1.jp Figure 7. SMITH, K. 2016. Is Mango’s New Pricing All It’s Cracked Up To Be? [Online]. Available: https://edited.com/blog/2016/03/man-gos-new-pricing-cracked/ [Accessed 27th April 2019] FIgure 8. Mango [Online]. 2019. [Accessed 26th April 2019]. Available from: https://shop.mango.com Figure 9. EUROMONITOR. 2019. Apparel and Footwear: Euromonitor from trade sources/national statistics [Online]. Available: https://www.portal.euromonitor.com/portal/StatisticsEvolution/index# [Accessed 27th April 2019]. Figure 10. Mango [Online]. 2019. [Accessed 26th April 2019]. Available from: https://shop.mango.com Figure 11. INDEX, S. B. 2019. Mango v.s Zara's content engagement [Online]. SPRINKLR BUSINESS INDEX. Available: https://businessindex.sprinklr.com/compare/58359526e4b0fa0ed24f3191-mango/58359520e4b0fa0ed24f30b3-zara/content-insights?period=7 [Accessed April 27th 2019]. Figure 12.interactive retail display. SMITH, K. 2015. Mango '' revolutionises" o¬ering with supply chain changes. [Online]. Available: https://www.just-style.com/news/man-go-revolutionises-o-ering-with-supply-chain-changes_id126774.aspx [Accessed April 27th 2019]. Figure 13. Global natural fragrance market. TMR. 2016. Global Natural Fragrance Ingredients Market: Europe to Assume Lead as Players Remain Strong, Says TMR [Online]. Available: https://www.transparencymarketresearch.com/pressrelease/natural-fragrance-ingredients-market.htm [Accessed 27th April 2019]. Figure 14~16 .Mango [Online]. 2019. [Accessed 26th April 2019]. Available from: https://shop.mango.com Figure 17 .Trendland [Online]. 2019. [Accessed 26th April 2019]. Available from: https://trendland.com/delfina-balda-ss-14/ Figure 18~23 .valeurabsolue [Online]. 2019. [Accessed 26th April 2019]. Available from: https://www.valeurabsolue.com/en/ Figure 24 .imgur [Online]. 2019. [Accessed 26th April 2019]. Available from: https://imgur.com/a/mPFAVt5 Figure 25. mae stier [Online]. 2019. [Accessed 26th April 2019]. Available from: https://maestier.com/product Figure 26. . Cate Trotter.2016 [Online]. 2019. [Accessed 26th April 2019]. Available from: https://www.insider-trends.com/50-most-beautiful-concept-stores-from-around-the-world/ Figure 27.. valeurabsolue [Online]. 2019. [Accessed 26th April 2019]. Available from: https://www.valeurabsolue.com/en/
SELF REFLECTION Throughout the Fashion Marke�ng class, I have learnt knowledge about fashion marke�ng strategies and principles. Combine the knowledge to prac�cal work, I find out it’s not as easy as I imagined. The effort to think of marke�ng ac�vi�es is plen�ful which as a consumer will not no�ce. Furthermore, I find the plan is comprehensive, that each sector will be related to other sector, thus in other to make sense with each other, logic is important in presen�ng a complete plan. Now, I am going to go through the process at finishing a marke�ng plan. First, I need to think of an market gap what can be filled by new marke�ng plan. The idea is usually related to things surround ourselves, such as personal experience, interest, phenomenon we observed. My idea occurred is related to my experience. I think of the fashion brand Mango because I had worked part-�me during my university �me. I find familiar with this brand, thus drive my interest on develop marke�ng ideas about this brand. Then I start to look on ar�cles about the brand, gaining depth informa�on about what people are talking about the brand and that’s when I get inspira�on on my marke�ng plan for mango. The idea is driven based on a press comment on Mango’s current marke�ng strategy is already adepts to its compe�tor for a long �me. Base on the crisis, I find the issue that the brand needs to dress. At the same �me I also look on industry sta�s�c to get more clear view on how’s the brand performed on the market. In addi�on, I also look to the brand’s report, and they are talking about being more fast on their design and produce lead �me, emphasizing on digital marke�ng. A�er all, this strategy are actually just following other’s step and won’t make them stand out from the industry. In this concerned, I think the brand would need to reposi�on itself in order to raise its visibility to the public. A�er finding the gap, I start to look on macro trend in poli�cal, environment, society, technologies to find ideas for new market opportunity. And the ar�cle about the emo�onal trend arouse my interest. It talks about how mood can be driven by retailer. At the same �me, I also seen ar�cle from industry insight related to retail shop. Which comment on the brick and mortar shop need to put effort on enhancing shopper’s in-store experience to be unreplaceable from the preference of online buying behaviour is having the advantage of convenience. Base on the research, I find the ongoing trend on premium fragrance, and I think of the value proposi�on of Mango’s new collec�on for the existed target segment. For the first reason , is base on the brand’s concept which is to dress urban women with all her daily needs. So, I find Mango already have clothing line and accessories. However, there is currently no beauty line of the brand. Meanwhile, no�ce Zara and H&M both have beauty line, but the products are rather towards mass market. On the contrary, the new fragrance line for Mango is offering higher value which is 100% nature and has a stress-release func�on. This new business idea is then being analysed through SWOT market model, in order to confirm it is value or not. Over the SWOT analysis, the customer profile is analysis, as they are the target buyer, iden�fied who is going to buy it is a crucial part for the marke�ng plan. There is also needed for research on new compe�tor to find what others offered and what we offered different from them. A�er the checking on market posi�on, we will think of how the plan is going to conduct by market mix, includes product, price, place, promo�on. The product is about the premium func�on input, and the price is planned cau�ously base on the cost of the produc�on on the product, place is mainly focus on retail channel, about how our product be delivered to customer. Last, the promo�on part is crucial, it should have a launching schedule for different stage of the product. In order to get customer a�racted and further increase selling.