HSLU | DMI | Business Economy 1 | Marketing & Strategy | 04. 04. 14
Marketing Plan
FREITAG Anina Trutmann, Livia B체hlmann, Susann von Bornst채dt, Carole Meier
Executive Summary
FREITAG is internationally known for its innovative, solid, individual and sustainable products. Being one of the pioneers of producing recycled items, many companies started to copy and modify the idea. Still, FREITAG is awarded for being the original. Several techniques and surveys helped to analyze FREITAG’s current and future situation to establish a marketing plan. The social part of the STEP – Analysis states that FREITAG’s idea is highly known to the consumer in its market segment for more than two decades, so that its hip factor got slightly decreased due to mass consumption. However, the trend of individualism and environmental consciousness provides the chance to gain back its pioneer reputation. The technical ability to combine machine-made manufacturing with hand-made solutions supports the individual character. Economically can be summarized that FREITAG tries to expand by using products made out of scarce raw materials. Both factors combined create a high risk to run out of material before development of foreign market is finished. Probably prices will increase in future due to the difficulty to find truck tarpaulins. Especially expansion within Europe could turn out to be difficult due to the exclusive Swiss market and the consequences of the latest immigration law. Also research about competitors proved that expansion could become very challenging, because the market is covered with products out of truck tarpaulins. Additionally, FREITAG’s REFERENCE line enters a market of highly competed fashion accessories. By observing consumers through a survey and an ethnographic research, it is obvious that FREITAG customers are up-to-date about changes in society, but do not follow each latest trend in favor of making an individual statement. They buy FREITAG products due to its look and function. The SWOT-Analysis showed that FREITAG’s strength is their individual and sustainable character as well as their ability to reach consumers with storytelling. A weakness is that the story is strongly based on the brothers, which is risky if staff would change. Furthermore, the material of the FREITAG products is not known everywhere. The origin of the material has to be first communicated to understand FREITAG’s message. These are two challenges at once. An opportunity would be to use FREITAG’s reputation as an inventor by creating something totally different in order to eliminate the threat of their material scarcity. A further threat is the high numbers of competitors. An innovative product or service would have to come up. This marketing plan provides a service solution: In order to respond to the current situation of increasing working hours, teamwork ability and high expectations within companies, strategic activities have to be found to provide a constructive and comfortable working atmosphere within teams in order to achieve the best. FREITAG, which has a vivid bike culture among their employees could offer the great service of city bike tours for business groups through Zurich in order to provide an additional touch point, to present the character of the company and to differentiate themselves from competitors. A detailed marketing plan has been provided in the following chapters.
TABLE of content Executive Summary History 2 Macroenvironment - STEP 2 Microenvironment 3 Buying behaviour 6 SWOT Analysis 7 Market Segmentation / Targeting 8 Marketing Mix and Strategy 10 Marketing Research 16 New Product 19 Conclusion 21 Appendix 23
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Foto Joël Tettamanti, FREITAG lab. ag / NŒRD
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History The success story of FREITAG began on a rainy day somewhere in the 90’s. The two brothers Markus and Daniel FREITAG complained that no store offers water-repellent bags, which one can use for cycling. Their window of their apartment faced directly towards the highway of Zurich. Heavy trucks, with truck tarpaulins to protect the goods, passed by. Yes, this was the solution: Using truck tarpaulins out of PVC for making bags! Another inspiration derived from their daily used bicycles: The inner tube of a bicycle could be used to protect the bag’s edges! A used seatbelt gave the final touch to the bag and provided the solution for a handle. Being both graphic designers, the brothers shared the wish to turn the idea of giving old, recycled materials a second life into a business. 1993, the company FREITAG was born.
MacroenvironmenT - STEP Sociological
- Through the „R.I.P. Character“ (recyceld individual products) the bags are responding to the trend of individual products - Over the last twenty years, other competitive products entered the market and caused that FREITAG products are regarded as being less unique as before The original customers of FREITAG.lab products grew older. The main consumers of FREITAG nowadays can be defined as late majority - Targeting Gen X and Gen Y - Lifestyle changed from recycling to individualism
Technological
- „R.I.P.“ are mostly produced by hand - Self-developed FREITAG production process: raw materials, cutting the tarps, washing, bag design, sewing - Sewing of the bags done through partners in Switzerland, Czech Republic, Bulgaria, France, Portugal and Tunisia
Economical
- FREITAG wants to enter new markets. - As the tarps get more scarce the company will have to deal with increased costs, which either has a negative effect on the margin or raises the product price - The treat of used material causes additional costs and is time consuming
Political
- Regulated use of water - Foreign policy of Switzerland affects the export - Changes in bilateral contracts
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Microenvironment The company
FREITAG lab. ag / NŒRD has their headquarter in Zürich-Oerlikon, Schweiz. The company has around 170 employees working in six main departments: finances, human resources, operations, innovation, brand communication and sales.
Suppliers
The main material of FREITAG products is truck tarpaulin. The company is buying them from several different and changing suppliers around Europe. As tarps are only limited available, they are constantly looking for new victuallers. They even have a subscription page online, where new suppliers can apply.
Marketing intermediaries
Resellers: There are 350 retail shops around the world, which sell FREITAG products. Eleven own FREITAG stores in Berlin, Davos, Hamburg, Köln, New York, Wien, Lausanne, two in Tokyo and two in Zurich, worldwide more than 470 trading partners and an online store based in Zurich. more on page 13
Customers
FREITAG is in a B2B and B2C relationship. The biggest business market is Switzerland but they are also selling internationally. more on page 8
Competitors
FREITAG’s product position is communicated as being unique, environmentally friendly, Swiss, innovative, recycled, functional, lasting, indestructible, urban, cosmopolitan and handy. Due to FREITAG’s great success to offer second life products, other companies tried to copy the idea. During research, we recognized that most companies offering similar ideas. Therefore, FREITAG tries to differentiate the brand in every touch-point, in order to gain competitive advantage: vivid story telling instead of traditional advertising, philosophy based on true values, no standardized form-letters to customers, displaying their employees on their website, usage of old containers to build flagship-stores, etc. By introducing the elegant reference line, FREITAG on the one hand differentiates its product from imitators, but on the other hand enters a market of non-recycled, elegant bag producers like Navyboot and Braun Büffel. Therefore, FREITAG’s competitors can be split into two groups: companies with second life products and companies with first life products. Companies with second life products: Kitebag: Kite boarding is a popular water sport. The Swiss company Kitebag uses second-hand kites to produce bags and other accessories. Quite famous is their airplane seatbelt webbing that can be used as a belt for ones trouser. Feuerwear: The German fashion label produces bags, belts and wallets out of used fire hoses to offer unique and indestructible products that last forever. Also, it is a certified member of No Brands, which stands for high social and ecological standards.
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Companies with first life products: Navyboot: Navyboot is located in Zurich and offers shoes, clothing, sunglasses and accessories like bags with a high quality standard and hand-made features. Inspired by old traditions of US Marines, the design returned its timeless and comfortable classic products into a more contemporary look. Braun Büffel: Braun Büffel is a German leather company, which is on the market for more than 120 years. It stands for living tradition, strength and an affinity for leather. The company contains a business, a casual and a fashion line which guarantee highest quality, ideal comfort and a distinct handwriting. Sandqvist: The founder Anton Sandqvist got inspired by FREITAG’s messenger bag and started to produce bags out of tarpaulin. Soon, he used artificial leather instead and changed the design to a more sophisticated look. Over the last years, he completely uses leather to produce uncomplicated and beautiful bags with a clear Swedish character. Fossil: The American and since 2001 also Swiss company creates modern yet vintage products for everyone. Starting with watches, they launched into accessories by offering handbags, belts, small leather goods and sunglasses. Herschel: The Canadian manufacturer produces finest quality backpacks, bags, travel goods and accessories with focus on timeless design and regard on details. The Studio Collection is one out of four collections, which especially focuses on long lasting products that can be passed down for generations. The North Face: The American company The North Face offers an extensive line of high performance outdoor clothing, equipment and footwear. The company has a strict timeline for their sustainability program, in order to eliminate waste, reduce packaging and find new solutions for chemicals used in their garments. High Quality
Braun Büffel
Navyboot Sandqvist
FREITAG Kitebag Feuerwear Low Price
The North Face
Fossil
Herschel
High Price
Low Quality positioning map based on comperison price and quality of messenger bags
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Foto Joël Tettamanti, FREITAG lab. ag / NŒRD
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Buying behaviour Need recognition
A potential FREITAG consumer is looking for a solid, trendy and individual item to transport his belongings safely, weatherproof and comfortable. Still, the outward appearance is important to him and not everyone should have a similar or equal bag. The FREITAG customer reacts most notably to external stimuli, for example: obtained information of his close socio-environment.
Information search
Because FREITAG is rather modest with its advertisement, the commercial sources are less important to a potential FREITAG customer. The marketer is not directly taking influence on him. The focus is stronger on personal sources like the mouth-to-word advertising of friends and family, or the to see and to be seen factor. After searching for channels of FREITAG, he uses the most important commercial source; their website. There, the customer is getting in touch with the vast product segment and its individual designs.
Evaluation of alternatives
Generally consumers evaluate the products/bags mainly according to its quality, cost-benefit ratio, weather resistance and lifespan. Due to the prior information search, it is obvious that the market of bags is huge. On that account, the influence of the socio-environment and the sympathy to the company is a main factor for the customer’s choice.
Purchase decision
The final decision is taken mostly due to the function and design of the FREITAG products and its changeable utilization. For example, a FREITAG bag is totally water- and weatherproof, solid, handy, but still design-driven and unique. The loyalty to the brand is less important.
Post-purchase behavior
A satisfied FREITAG customer uses his high qualitative and longlasting product in various ways. It underlines his individuality and fullfills his expectations in design and function. Through wearing, he automatically generates a commercial source.
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Swot analysis Strengths - long lasting product (sustainability) - unique use of material (recycling) - sustainable production process - active in main cities like Zßrich, Ber- lin, New York, Tokyo - marketing, packaging and storytelling - long-term products - one brand – one marketing (adaptable) - individual design
Opportunities - growth in international market - using new materials affects product appearance - new product lines/segments
Weaknesses - material is not globally known - high use of water during production - reseller: often a very small assortment - strongly based on the two brothers - money-for-value ratio is not given (accessories) - less repurchase due to the solid quality and the high price - connection to bikes is not known from pure appearance - smell - velcro - the desired design is not available
Threats - running out of material within 20 years - high number of competitors in the market - increasing demand for organic products - family issues between the two brothers
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Market segmentation / Targeting Segmentation & Survey results* Geographic
is about dividing the market into different geographical sectors. FREITAG targets the urban market. Our survey results that 80% from the bag owner live in a city or in a suburb of a city.
Thommy The urban creative brainworker A typical FREITAG customer is the 28 year old graphic designer Thommy. He lives in the trendy district of Zurich in a stylish and urban loft. Fashion plays a central role in his life. He prefers wearing casual but patterned shirts to colorful cotton trousers and a pair of fancy leather shoes. Thommy loves his fixie bike, which he uses to get to the weekly vegetable market or to meet his friends in his favourite café for a „Club Mate“. He always carries his apple mac book pro and his iPhone 5 around and likes to store it in the bike-friendly FREITAG messenger bag.
*the survey is analyzed on page 21
Demographic
segmentation divides the market into groups based on variables, such as age, gender and income. The age of customers is between 19-40 years. With 64% the age group 19-24 years is mostly represented. 75% of the FREITAG bag owners are female. The income range of FREITAG customers covers no income to over 130‘000.- CHF a year. The biggest share with 28% are people with an income under 16‘000.- CHF, closely followed with 20% each from the income range 35‘000.to 60‘000.- CHF and 60‘000.- to 100‘000.- CHF.
Psychographic
is about dividing buyers into different groups based on lifestyle or personality. 31% of the participants are using their bag for a learning environment, another 29% for leisure time.
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Foto Joël Tettamanti, FREITAG lab. ag / NŒRD
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Marketing Mix and Strategy 1. Product «FREITAG FUNDAMENTALS: around 40 models FREITAG REFERENCE: around 15 models» The aim of the FREITAG products is to help the owner to transport or cover items easily, safely and in a functional and design-driven way. Therefore, FREITAG transforms used truck tarps into highly functional and unique items. FREITAG is first of all well known for its bags. Nevertheless, the product range and its different product lines are broad and contain bags in all variations, as well as sleeves for several products like iPhone’s or iPad’s.
«Giving used materials a new life – recontextualizing.» As said before, FREITAG persuades with design and function. Therefore, every product has numerous features to satisfy the targeted audience. For example: the adjustable shoulder straps, the handlebar grips, the hidden zipper pocket, the protective zip cover, the quick-release buckle, the pocket for the iphone, the lift-up strap-system etc.
«Bequembar, radfahrbar, erweiterbar, unkaputtbar» The products of FREITAG are not focused on trends. While a lot of other companies adapt trends to their products, FREITAG stays with the focus on design, function and quality. Due to the extremely resilient and very carefully by hand processed material the FREITAG products are extremely long lasting, even if used on an everyday base. The FREITAG design is chosen to give every individual the individual item. Because of the use of various parts of the truck tarps, each item consists of different colors, patterns and abrasions.
«Moden kommen und gehen - die Firma FREITAG aber bleibt bestehen!» Still, FREITAG and especially the brothers are always thinking about new products. They are sure to be able to penetrate new markets. For example, they were discussing to sell the invented shelf system, which they already use in all FREITAG shops. For FREITAG the packaging is as important as the bag itself. Therefore, they create sustainable cardboard or paper covers, which can be transformed into specific and funny items like a TV, hanger, etc. As a result, FREITAG is able to reduce the use of material for the packaging, as well as the waste down to a minimum. As a latest example, they placed drawings of insects on bags and boxes, to connect with the firm’s main topic of recontextualizing and truck tarps.
11 This once more showed the vivacitiy of the products and its materials. In the stores, the packaging serves as a sort of stock shelf, which is even patented. This animates the customers to take the boxes out of the shelf to find the perfect matching and individual bag. Hence, the space is optimal used; all shops look similar, very urban and stylish.
ÂŤUsed material per year: 440 tons of truck tarpaulins (equivalent to a 68-mile-long line queue of transport trucks) 35,000 bicycle inner tubes and 288,000 car seatbelts.Âť
Growth - Share Matrix
Relative Market Share
Low
Market Growth Rate
High
High
Low
Dan Keyholder
Fern
Agenda
Dragnet F12 Joan Cheyenne
Mac Laren
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2. Price
The two product lines of FREITAG differ not only in design, but also in pricing. Whereas the prices of the FUNDAMENTALS range from 90.- CHF up to 390.- CHF, the price spread of the REFERENCE line is 220.- to 680.- CHF. Each line has its own product-line pricing strategy, as well as its own target group. The REFERENCE line targets business people and is sold at a significant higher price level than the FUNDAMENTAL line, which is targeting mainly younger customer. What both lines have in common; the bags are perceived as high quality products. Even though their material is plastic, used and sometimes dirty looking, the customers are willing to pay high prices. This can be explained through various aspects. Firstly, the production needs a lot of manual work and is mostly done in Switzerland. Secondly the bags fulfil the need of individuality. Each bag has its own design and history. The aspect of recycling old tarps responds to environmental concerns of the buyer. Furthermore, the bags have a long product life cycle. When launching new products, FREITAG sets a high price. The company avoids any discounts. FREITAG sells through various channels. By ordering the item directly from the FREITAG online store, there are the following possibilities to pay the purchase: Visa, MasterCard, American Express, Postcard (only CH), PayPal and prepayment.
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3. Place FREITAG Flagship-Stores FREITAG runs three own Flagship-Stores in Switzerland. There are eight international stores in Berlin, Colone, Davos, Hamburg, New York, Vienna and two in Tokyo. All of them are limited service retailers. They are strongly representing the brands mind-set and serve as branding statement, especially the store in Zurich located in the industry district MAAG-Areal. The store is built out of discarded transport containers. The sales prices are the same as the one in the retail stores. Logistically the Flagship-Stores are used as stock. FREITAG Online Store The online consumers are difficult to satisfy. The doubt about the actual look of the bag is, in the online store, the greatest concern. The buying reticence is quite big and at the same time the quote of return is high. Because of these issues, FREITAG decided to display their bags very detailed and from every angel. You can zoom to every detail and get a 360-degree view. Logistically, the none-store retailing differs. The individual models are stocked separately to send them afterwards directly. There is a 48-hour delivery policy for online orders. The transport and custom costs are an important factor. For these reasons FREITAG delivers the EU from its stock in Hamburg. The rest of the world receives its bags from Zurich. This means that only the bags available in stock can be displayed in the online store. FREITAG Dealers The retail industry is the dominating way of selling. The bags are available in more than 350 different retail shops. After a recommendation from FREITAG, the margin is defined by approximately 50% to the end customer price. To avoid discounts and a high price competition between the different shops, FREITAG takes all the unsold bags back. Every shop has an extensive range of goods, recommended directly from FREITAG. They are even building key figures to the shops stock turnover to help them improve their business. The speciality stores can not choose the single models. They get a package directly from FREITAG with about 25 pieces, in which the colours and designs are arranged to an attractive mix. For the presentation within shops FREITAG provides boxes with a photo and description of every bag in front of it. Therefore every customer can decide on which box he wants to have deeper look. A FREITAG sales team coaches most of the retailers. As an active sales support, the shops can purchase special shelves, displays, posters and other articles. With events like “Cut your own bag� customers can directly cut their own canvas and get the ultimate experience.
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4. Promotion
How can a simple bag from a small company like FREITAG receives such a great status that it is even displayed in the Museum of Modern Art in New York and Zurich, without publishing any conventional advertising? The overall communication to the consumer is based on storytelling. It is the story about two brothers that searched for a solution to fulfil their needs. No matter which website mentioning FREITAG one enters, one will find this story. Analysing the few pictures that were taken for promotional use, one can confirm that these are about storytelling as well by drawing the focus on action rather on the product itself. Often the product is somewhere hidden in the picture without even showing its features. The biggest platform for their storytelling is their website. Here, consumers get to know HeadphoneLara, who is the dangerousdesigner of FREITAG, see Daniel - one of the brothers - trying on some Google Glasses and much more. Each post is waiting for interaction with the consumer by commenting on it, becoming a follower or liking it. Commercial video clips display the bag as an indestructible, humorous bag that even shows emotion by acting like a human. The online store gives opportunity to observe the bag in detail by using a 360 degrees view from inside and outside and by watching a video about features and usage. Due to its customer friendly, easy-to-handle online store, reshipment could be reduced by 70%. The packaging is covered with all-over paintings of squeezed bugs that died from crashing into trucks and therefore communicates the origin of the material to the consumers. Also, the flagship store in Zurich carries the message of a second life product by being built out of used containers. FREITAG tries to control their product display in external retail stores by determining the choice of order and color for each store to guarantee a perfect color mix and the right choice of products. Unsold products have to be send back to the company. They also give promotion ideas to retailers for free. Value and key words are constantly communicated to the consumer like unique, environmentally friendly, Swiss, innovative, recycled material, functional, lasting, urban, cosmopolitan and handy. FREITAG even made up some German words like the combination: bequembar, radfahrbar, erweiterbar, unkaputtbar. Communication to customer is also done by sending newsletter, organizing competitions to win prizes and inviting customers to visit the company. The company tries to expand their communication to other countries as well, since Switzerland leaves almost no opportunity to grow. The communication focus lies on Japan and Europe. Our survey proved that FREITAG’s communication has been successful since 95% participants knew the origin of FREITAG’s materials. The two brothers think that the communication is successful, because the idea is based on a true story. The philosophy of the product is so strong that it fulfils trends of two decades without changing the actual product: hype about recycling, individuality, the used look and the trend of environment-friendliness. Therefore, the company is convinced that their products do not need conventional advertising since these are built on timeless basic values.
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Foto Joël Tettamanti, FREITAG lab. ag / NŒRD
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Marketing Research In order to find out more about the market, the project team used two different research methods. On one hand through an online survey and on the other hand they gained an in depth insight into the daily life of a FREITAG customer.
Survey Results Our survey was created online with findmind.ch and comprised twelve questions. We distributed the questionnaire via social media channels and mail. In the end, we achieved 146 participations within five days, whereby 87 attended on day one. Two out of three of our participants were female, and nearly 60% were between 19 and 25 years old. A majority, around 30%, has an annual income of 60‘000.- to 100‘000.- CHF. When we were asking for the participants favourite bag label, 19 were mentioning FREITAG, before knowing what company the survey is about. 39 of all attendees owe one or more FREITAG bags, whereby the messenger bag Dragnet F12 is the most frequently mentioned. The buying decision was made because of the design or functionality of FREITAG bags. More than half of the bags were bought in a FREITAG Flagship-Store or from a FREITAG reseller, while only 10% were ordered online. From all our attendees only 55% think that the value-for-money ratio is given. One out of three is using his or her bag in a school or study area, another one out of three uses the bag during leisure time and only a few are using it for traveling. We got several indications when we were asking for improvement suggestions. Some were mentioning the special and strong smell of the bag, which is irritating. Others think, it is too expensive and some mention that the design needs improvement. To test if FREITAG is communicating their vision of upcycling and using old traps succesfully, we were asking about the origin of the material. The result was very impressive. More than 95% participants knew about the truck tarpaulins and their message.
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Ethnographic research In order to get an insight into a daily life of a FREITAG user, we got the chance to observe Simon M. during 16 hours. 06.05 am
The alarm clock is ringing. Simon gets up, takes a shower and gets ready for the day.
06.25 am
He packs his F77 Ben FREITAG bag and leaves the house.
06.43 am
The train leaves Bern in the direction of Biel.
07.08 am
After arriving in Biel, Simon walks towards the building of “Höhere Fachschule für Technik”, where he works as a research assistant.
07.27 am
The FREITAG bag is placed on the floor. Simon cannot use his Mac Book at work- the school uses DELL. Simon takes out his mobile phone and tissues and starts answering his e-mails.
---During the working hours the FREITAG Bag stays at the same place--12.17 pm His working mate enters the room to go and have lunch together. Simon takes his wallet out of the bag and they leave the room. 01.03 pm
Simon is back in his office. The wallet stays in his pocket.
---During the working hours the FREITAG Bag stays at the same place--05.20 pm
Simon leaves his office with the FREITAG F77 Ben.
05.35 pm
With the bag in his hand, Simon is doing his food shopping for the following days. At the cashier, he packs the goods into the bag.
06.08 pm
He catches the train back to Bern. On the ride, he is eating a snack.
06.36 pm After arriving in Bern Simon is walking home to bring his shopping home. 06.50 pm
Simon is at home. After having stowed away the food, Simon picks up his sport equipment.
07.10 pm
With his F77 Ben on the back Simon leaves the house. He drives by bike to the gym.
07.45 pm
The handball training is starting.
09.45 pm
The training ends. After having a shower, Simon takes his bike and his F77 Ben and cycles home.
10.30 pm
After a long day, Simon goes to bed.
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Findings Simon M. seems to fit very well into the target group of FREITAG. He lives in the heart of Bern and the term „creative brainworker“ works well with his current job. During the observation Simon M. used the bag as a business bag, a shopping bag and as a sports bag. He had it with him on the train, on the bus, while walking and on his bike. Simon M. stated out that he does not always use his F77 Ben. Sometimes he takes his F49 Fringe - one of the backpacks of FREITAG.
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New product FREITAG City Bike Tour The trend proves that working hours are increasing and companies focus more and more on teamwork, which makes a good working atmosphere essential. How can companies support team spirit and make employees feel comfortable within their company? Searching for a new service, FREITAG defines the core benefit as strengthening the bond between employees and creating positive memories for group members. This problem-solving benefit will be turned into an actual service by providing a city bike tour for employees of a company! FREITAG will offer employees from all kinds of business the great opportunity to enjoy community by making a city bike tour with their colleagues and additionally getting to know a new side of Zurich. Urban natives will guide the group and present their secret hot spots to create an unforgettable customer experience. Groups can also register several times since guides and routes are changing. This service fits perfectly to FREITAG’s common product line, as the company is known for its vivid bike culture among their employees. Products of FREITAG reflect this spirit as well. The benefit for FREITAG will be to establish an additional touch point and to present the character of the company to their customer. Moreover FREITAG will differentiate themselves from their competitors by offering an innovative service. The challenge will lie in promoting since this offer is an unsought consumer service, which is unknown to the customer. Additional promotion is required to gain consumer awareness.
Product
A guided city bike tour through Zurich, for employees of any kind of business, to show them hidden and unknown hot spots of the town.
Price
Because it is an innovative service, prices have to be tested and observed in future. Researches stated that 45 CHF per person for 2 hours would be a reasonable price setting, comparable with other city guided tours offered by the tourism institute of Zurich.
Place
The service is only available in Zurich and can be booked on the FREITAG homepage.
Promotion
The two brothers are working very focused in their FREITAG office. Suddenly, one sees, what time it is, jumps up and gives his brother a sign to stop working and to follow him. They are quickly going from room to room and signalling their employees to drop their work. Everyone puts on a cycle helmet, takes a bike and off they go to different directions. The two brothers drive through Zurich, stop at a bank,
20 stand in the waiting line till they reach the bank counter and say: It’s Friday! Get out of the company and get into Zurich! The banker immediately drops his stuff, leaves the building, takes his bike and follows the brother. You see more and more people getting out of their offices and each following employees from FREITAG. The city is in motion. It’s Friday! This movie clip will be shown on the FREITAG website, as it is the centrepiece of storytelling. It already contains pictures and little introductions of each employee. Since their employees are encouraged to use their bikes daily to drive to work, each employee could add pictures of their last bike tour with an offer to show people some hidden corners of Zurich. However, FREITAG can even take promotion one step further by expanding this idea to a new media channel that is also highly recognized for its storytelling quality, the cinema. Since the FREITAG City Bike Tour will address locals, the cinema is the perfect place to reach this target group. FREITAG could even decide in front of which movie they want to show their ad to control their audience. The target group would be everyone who works in a company and would like to share an activity with his colleagues. Additional information could be added in a newsletter. This kind of promotion would communicate emotions, excitement, surprise and creativity to the audience in order to create an emotional benefit that delivers “a sense of community”, “spontaneity”, “the promise to discover something new” and a statement to an environmentally friendly and healthy lifestyle. The service would be positioned on strong beliefs and values. Since FREITAG has a high brand equity in Switzerland due to their successful differentiation (known for their usage of unique materials), their relevance (meets the need of wearing a statement item to prove an environmentally friendly lifestyle), the common knowledge (high brand awareness in Switzerland) and their esteem (people see it as one of the early pioneers which started off the trend to use recycled materials), one can take the risk to introduce a new service that manages service differentiation in regard to compete with competitors. The video clip would also combine person marketing and place marketing by promoting the two brothers as the main characters of the company and by promoting Zurich. There would be even a possibility to work together with the city of Zurich.
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CONCLUSION After an intensive research about the brand FREITAG, we identified individualism, storytelling and their sustainable character as their strengths. However, they face high competition within their market. Especially, the REFERENCE line could carry the risk of loosing FREITAG’s individual character since the shapes are strongly related to common fashion items of mainstream companies. Competing with these fashion items could force FREITAG to loose its timeless design and character. Another fact is that they are forced to think about an alternative material. Moreover, several countries not even know truck tarpaulins. However, this knowledge is essential to understand FREITAG’s story and message. It is questionable to plan to enter new markets by using a material that is slowly running out and also highly unknown. Timing would be perfect to introduce products out of different material since customers expect FREITAG to act as a pioneer. The company could even take the risk to create something totally different due to their great innovative reputation. Focusing on the brothers as the face of the company could promise great success but it could also lead to a disaster if staff changes are happening. To avoid any risk, storytelling could slightly move towards presenting a certain spirit as the face of the company. To conclude, the service of offering a city bike tour would promote the sustainable spirit of a bike culture, would add a service that mainstream competitors do not have, would support individualism since each bike tour is different and would move away from the truck topic. Also, one’s own story about the FREITAG’s City Bike Tour could be included in the storytelling process. In future, FREITAG could expand the idea to different target groups and different cities as well. Taking these facts into account, one can say that the FREITAG City Bike Tour will be a great success and a step forward towards a new innovative offering.
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Foto Joël Tettamanti, FREITAG lab. ag / NŒRD
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Appendix 1 - Sources Bibliography Online History
Current Market Situation - STEP
Microenvironment
Buying behaviour
SWOT
http://www.nzz.ch/aktuell/startseite/freitag-taschen-erobern-europa-1.2020478 (18.03.14) http://www.freitag.ch/about/history (19.03.14)
http://www.bloomberg.com/news/print/2012-07-24/ freitag-brothers-tick-swiss-fashionistas-fancy-with-biking-bags.html (25.03.14) http://www.freitag.ch/media/about/ (25.03.14) http://www.pressroom.ups.com/pressroom/staticfiles/pdf/case_studies/Freitag_ENGLISH.pdf (18.03.14) http://www.freitag.ch/about/factsandfigures (18.03.14) http://www.freitag.ch/media/about/ (18.03.14) http://www.agenturamwasser.ch/artikel/freitag-bros/ (25.03.14) http://www.behance.net/gallery/Freitag-Bags-Ad-Series/4241865 (25.03.14) http://www.swissworld.org/de/know/innovation_schweiz/freitag_der_alltaegliche_designklassiker/ (25.03.14) http://www.kitebag.ch/wasist.php (25.03.14) http://www.feuerwear.ch (25.03.14) https://www.navyboot.com/en/company/craftsmanship (25.03.14) http://www.braun-bueffel.com/en/collection/men/business/firenze/ (25.03.14) http://www.sandqvist.net/en/about-sandqvist.html (25.03.14) http://www.fossilglobal.com/webapp/wcs/stores/servlet/ContentView?page=customerCare_companyProfile&storeId=36081&catalogId=25005&langId=10 (25.03.14) http://www.herschelsupply.com/about/ (25.03.14) http://www.thenorthface.de/blog/de/de/sustainability (25.03.14) http://www.experience-online.ch/cases/experience20.nsf/volltext/freitag_proconcept (25.03.14) http://www.pressroom.ups.com/pressroom/staticfiles/pdf/case_studies/Freitag_ENGLISH.pdf (26.03.14)
Market Segmentation http://www.experience-online.ch/cases/experience20.nsf/volltext/freitag_proconcept Targeting (25.03.14) Marketing Mix and Strategy
http://www.bloomberg.com/news/print/2012-07-24/ freitag-brothers-tick-swiss-fashionistas-fancy-with-biking-bags.html (25.03.14) http://www.freitag.ch/about/factsandfigures (01.04.14) http://www.freitag.ch/media/about/ (21.03.14) Vom Hipster zum Klassiker, Artikel (01.04.14) http://www.freitag.ch/about/factsandfigures (18.03.14) http://www.freitag.ch/media/about/ (18.03.14) http://www.freitag.ch/about/production/rawmaterials (21.03.14) http://www.freitag.ch/about/production/bagdesign (21.03.14) http://www.freitag.ch/about/production/sewing (21.03.14) http://www.agenturamwasser.ch/artikel/freitag-bros/ (25.03.14)
Books
Kotler, P & Armstrong, G. Harker and Brennan. Marketing an Introduction, Perason, Prentice Hall, 2012, P. 188-191 Museum f端r Gestaltung Z端rich, Renate Menzi. FREITAG Out of the bag, Lars M端ller Publisher, Z端rich, Switzerland
Personal Infromation
Marilyn Dietrich, Specialist Design Management, FREITAG.lahttp://www.freitag.ch/medias/sys_master/8846027423774/FTTB_1_8_RGB_Tettamanti.jpg (01.04.14) http://www.freitag.ch/medias/sys_master/8846027915294/FTTB_2_5_RGB_Tettamanti. jpg (01.04.14)
(Phone calls and E-Mail)
24
List of figures
Appendix 2
http://www.freitag.ch/medias/sys_master/8846028636190/FTTB_3_1_RGB_ Tettamanti.jpg (01.04.14) http://www.freitag.ch/medias/sys_master/8846029619230/FTTB_4_3_RGB_ Tettamanti.jpg (01.04.14) http://www.freitag.ch/medias/sys_master/8846097186846/FTTB_5_1_RGB_ Tettamanti.jpg (01.04.14) www.femina.ch/files/hipster_0 (01.04.14) pictures ethnographic reserach, Livia Bühlmann (19.03.14)
Marketing Group Work Decleration Presentation Topic: «Marketing Plan FREITAG.lab» We hereby declare that all group members listed below contributed equally to the term paperwork task.
Name
Student Number
Susann von Bornstädt Livia Bühlmann Carole Meier Anina Trutmann
Appendix 3 Calculations Competitor Analysis Herschel
43€
The North Face
90€
Fossil
129€
Feuerwear
159€
Kitebag
199€
FREITAG
190€
Braun Büffel
298€
Navyboot
498€
Sandqvist
1295€
Signature
Date
25
Appendix 4 Questions Survey 1. Geschlecht? Weiblich / Männlich 2. Alter? 14-18 / 19-25 / 26-32 / 33-40 / 41-50 / 50+ 3. Wohnort? Stadt / Agglomeration / Ländlich 4. Jahreseinkommen? kein Einkommen / unter 16‘000.- / 16‘000.- bis 35‘000.- / 35‘000.- bis 60‘000.- / 60‘000.- bis 100‘000.- / 100‘000.- bis 130‘000.- / über 130‘000.5. Welche Taschenmarke mögen Sie am liebsten und wieso? 6. Besitzen Sie eine FREITAG Tasche? Ja / Ja, mehrere / Nein 7. Welches Modell besitzen Sie? 8. Wieso haben Sie ihre FREITAG Tasche gekauft? Aussehen/ Design / Funktion / Sympathie zur Marke 9. Wo haben Sie Ihre FREITAG Tasche gekauft? FREITAG Laden / online / FREITAG Händler / Second-hand / als Geschenk erhalten 10. Stimmt das Preis / Leistungsverhältnis? Ja / Nein 11. Haben Sie Verbesserungsvorschläge für FREITAG? 12. Aus welchen ursprünglichen Materialien bestehen die FREITAG Produkte?