Marketing Plan
By: Marija Pejkovic
Table of Contents
Corporate Information………………………………………….Page 3-‐5
Customer Profile…………………………………………………..Page 6
SWOT Analysis………………………………………………………Page 7-‐11
SWOT Analysis External Forces…………………..Page 7-‐8
SWOT Analysis Internal Forces……………………Page 9-‐11
Marketing Mix Strategies……………………………………..Page 12-‐16
Evaluation and Budget ………………………………………….Page 12-‐16
Marketing Research Survey ………………………………….Page 17-‐18
Examples of Ad Campaigns …………………………………..Page 19
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bebe Brand bebe designs, develops and produces a distinctive line of contemporary women's apparel and accessories. Manny Mashouf opened the first bebe boutique in 1976 in San Francisco. At that time, three categories dominated the women's wear market: junior, briouh women inspirational, sexy fashion. Thirty years later, bebe is an established company as one of the top women’s retailers that developed the contemporary market for the masses, before a non-‐ junior line/department ever existed.
Mission Statement “Our objective is to satisfy the fashion needs of the modern, sexy and sophisticated woman.”
Corporate Goals 1. Provide distinctive fashion throughout a broad product line. 2. Vertically integrate design, production, merchandising and retail functions. 3. Manage merchandise mix. 4. Control distribution of merchandise. 5. Enhance brand image. 6. In the fiscal year 2011, bebe plans to open 8 new stores and to relocate and expand 1 existing store. They plan to close up to 49 stores related to PH8. 7. Further enhance the customers shopping experience and integrate their webstore with retail stores and mobile applications. 8. Bebe plans to expand from 49 internationally licensed operating stores to 63. 3
Strategic Business Unit 1. Bebe-‐ Offers trendy apparel, bags, accessories and shoes. 2. Bebe Sport-‐ Offers work-‐out attire and accessories, located within bebe stores, sometimes a standalone store. Caters to performance and active lifestyle needs of the customer. 3. PH8-‐ A conversion of bebe Sport storefronts into PH8, offering casual weekend apparel, work-‐out attire and accessories such as bags shoes and various seasonal items. 4. 2b bebe-‐ bebe store that offers 2b bebe merchandise with logo and bebe retail markdowns.
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Management Organization Name
Job Title
Board
Manny Mashouf
Chairman and Chief Executive Officer
Executive Board
Barbara Bass
Director
Non Executive Board
Cynthia Cohen
Director
Non Executive Board
Corrado Federico
Director
Non Executive Board
Caden Wang
Director
Non Executive Board
Walter Parks
Chief Operating Officer and Chief Financial Officer
Senior Management
Barbara Wambach
Chief Administrative Officer
Senior Management
Kathleen Fong-‐Lee
Chief Merchandising Officer
Senior Management
Tara Poseley
President, Bebe Sport
Senior Management
Susan Powers
Senior Vice President of Stores
Senior Management
Lawrence Smith Amy Nichelini
Vice President, General Counsel Principal Accounting Officer and Corporate Controller
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Senior Management Senior Management
Customer Profile Bebe’s target customer is a 21-‐34 year-‐old woman who seeks current fashion trends to suit her busy lifestyle. She is a stylish, sexy, sophisticated, body-‐conscious woman who takes pride in her appearance. She is assertive, confident and cutting edge, looking for the same status in her clothing. She wants current fashion trends at high quality while paying a competitive price. She reads many fashion magazines, always staying on top of the hottest trends. She lives in the city and she loves go to shopping whenever she gets a moment from her busy social life. She attends fashion shows and has many industry contacts by working at a PR company. She is single and loves to splurge on herself, not just on apparel but her Mercedes Benz, apartment, beauty products such as Chanel and Dior and on recreational activities like yoga and Pilates.
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External Forces: (Macroenvioronment) External Forces
Opportunities
Competition
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Economics
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Threats
Clothing made from organic materials Building relationships with clientele
Increased demand for luxury goods in high growth emerging economies
Nature
Larger competitors with established financial, distribution and marketing resources
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Luxury & contemporary merchandise at lower price points
Big ticket items aren’t being purchased during the recession
• Offering clothing that corresponds to temperatures
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Sales on outerwear during the season they are needed
Fabric that keeps the consumer warm and cool during different temperatures
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Fires, earthquakes disrupting major facilities in which bebe operates in
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Part time employee benefits
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Purchasing of raw materials in the U.S. •
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Low consumer confidence
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Low entry barriers
Lower price points which helps stretch the consumers tight budget
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Politics
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Disruption of trade with countries in which bebe contractors, suppliers, or customers are located
Significant fluctuations in the values of the dollar against foreign currencies, restrictions on the transfer of funds
Regulations
Registration of trademarks domestically and internationally
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Increasing e-‐commerce market
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Ready-‐to-‐wear fashion shows on competing retailers websites Competing retailers giving the option to pre-‐order products for the following season
Celebrity associations
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Miscalculation of customer’s product preferences
Bebe fashion shows at LA, Chicago and Miami Fashion Week
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Manufacturers that violate labor laws
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• Accurately forecasting demand and fashion trends •
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Bebe blog
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Society
• Manufacturers that fail to conform to their quality control standards
Closing under-‐performing bebe stores
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Technology
• Bebe doesn’t own manufacturing facilities
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Trends that are not socially accepted
Internal Forces: (Microenvironment)
Internal Forces
Strength
Customer Profile
Weakness
Demographics
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Bebe’s target customers shop whenever they have a chance. Bebe’s target customers like to splurge on themselves
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Trendy young women buy luxury price but not luxury pieces
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15-‐64 year olds make up largest percentage of the population and bebe only targets women between 21-‐34 years old.
Psychographics
Geographics
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Trendy women like to look fashion forward
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Customers attend a lot of events and they are active, so they need a variety of merchandise.
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Stores located in regional shopping malls, freestanding street locations •
International stores 9
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Consumers don’t instinctively pick bebe over other competitors until they compare because bebe doesn’t have strong brand recognition.
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Bebe doesn’t follow up with their clienteling-‐ they build a relationship with the client while in the store, but they do not follow up to see if their client was satisfied or if they need more merchandise.
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Locations are in regions instead of counties
Behavioral Buying Traits
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Bebe’s target customers like to splurge on themselves.
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Low traffic
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Low average spend by consumer
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Company’s merchandise lacked appeal in ‘08
Bebe’s target customers are always staying on top of the hottest trends, therefore always buying new arrivals for each season.
Product Mix
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Licensing agreements to expand product lines
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Bebe designs their own merchandise
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Bebe does not offer men’s clothing
• Bebe carries many products and categories Pricing Strategies
Promotion
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Distributing only in retail and online helps control pricing
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Lower price points on new product lines, affects sales and further markdowns
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2b bebe-‐ merchandise at lower price points
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Long periods of markdowns
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Outlet 2b bebe stores have a large percentage of retail markdowns
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Loyalty program members receive points for every time they shop at bebe. When these points accumulate, they receive a small gift certificate to use on their next purchase. •
Gift cards with no expiration date
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• •
High markdowns
Untimely product delivery results in lower than expected sales and markdowns.
Distribution
• Product inventory management is critical to meet consumer demand • Distribution through company retail stores and online
Management Structure
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One week of delivery time after an item is bought and shipped from online Manny Mashouf owns substantial portion of outstanding shares-‐ other shareholders may not be able to influence direction the company takes •
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Suppliers response of emerging trends in a timely manner Raw materials held at suppliers warehouse
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Shallow skill base of associates hired at entry level
Lawrence Smith-‐ former general counsel for BCBG Maxazria. Lawrence has experience working for a brand that is bebe’s competition.
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Suppliers
Emila Fabricant-‐ former divisional merchandise manager for Barneys New York. Emila brings knowledge from a high end luxury department store, bringing ideas to bebe to help target their customer more precisely.
• Bebe failed quality control standards on products resulting in a delay of alternative products
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3rd party suppliers and manufacturers
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No long term contracts
Availability of raw materials and finished goods is uncertain
Introduction to Marketing Mix Strategies Here you will find marketing mix strategies for bebe stores Inc. Product, price, place and promotion will revolve around the central idea of launching a men’s collection for bebe stores Inc. I.
Product A.
Budget-‐ $15,000
B.
Objective-‐ Introduce a men’s collection for Holiday 2011. 1. Evaluation-‐ bebe’s men collection was introduced for Holiday 2011 on November 1st, 2011.
C. Strategy – Examine the type of clothing void within the marketplace for men ages 20-‐35 years old. 1. Tactic-‐ Conduct marketing research by surveying men 20-‐35 years old to find what styles of clothing need to be offered for their age group. a)
Execution-‐ Marketing Department: January 2011
2. Tactic-‐ Send surveys to existing bebe customers to see if they have a significant other that would possibly escalate into a bebe client if a men’s collection was offered. (Example on Page 17-‐18. a)
Execution-‐ Marketing Department: January 2011
3. Tactic-‐ Hire designers experienced in designing menswear for the ages of 20 to 35, to design the men’s collection. a)
Execution-‐ Human Resources: April 2011
4. Tactic-‐ Report what styles of clothing need to be offered to the new designers so they could design according to the consumers wants. a)
Execution-‐ Marketing Department: April 2011
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5. Tactic-‐ Hire reputable manufacturers that work closely with bebe’s existing manufacturers to make the clothing. a)
Execution-‐ Chief Operating Officer: June 2011
6.
Tactic-‐ Ship clothing from manufacturers to bebe’s warehouse. a)
Execution-‐ Logistics: August 2011
7.
Tactic-‐ Distribute clothing to be sent to the 12 top door stores. a)
Execution-‐ Merchandising Officer: End of October 2011
8. Tactic-‐ Follow up to make sure each store received the men’s collection by Holiday 2011. a) II.
Execution-‐ Senior Vice President of Stores: Mid November 2011
Price A.
Budget-‐ $2,000
B. Objective-‐ Launch a men’s collection by Holiday 2011 ranging in price from $60-‐ $200. 1. Evaluation-‐ bebe’s men collection for Holiday 2011 fell between the price points of $58-‐$198. C. Strategy-‐ Collaborate with manufacturers that create bebe’s women collection to set the men’s collection to the price point of $60-‐$200. 1. Tactic-‐ Look for designers with similar lifestyles, price points and looks, that corresponds with bebe’s lifestyle. a)
Execution-‐ Merchandiser: March 2011
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2.
Tactic-‐ Set an annual salary for the designer that cannot be adjusted. a)
Execution-‐ Chief Financial Officer: April 2011
3. Tactic-‐Purchase similarly priced textiles for the clothing that is to be made. a)
Execution-‐ Buyer: End of May 2011
4. Tactic-‐ Have the clothing manufactured in the same country as the women’s collection. a)
Execution-‐ Buyer: June 2011
5. Tactic-‐ Monitor the progress being made until the merchandise is received to the warehouse so that no additional charges are made to the company’s budget. a) III.
Execution-‐ Chief Financial Officer: April-‐ August 2011
Promotion A.
Budget-‐ $13,000
B. Objective-‐ Create an ad campaign targeted to 20-‐35 year old men to launch in November 2011 and begin the process of exposing this campaign. (Example on Page 19) 1. Evaluation-‐ bebe’s men’s collection ad campaign targeted men ages 20-‐ 35 years old and launched October 1st , 2011. C. Strategy-‐ Set a theme for the ad campaign that will attract the 20-‐35 male market group. 1. Tactic-‐ Work with the designer to find out what inspired them to create the men’s collection. a) 2.
Execution-‐Advertising Department: April 2011
Tactic-‐ Incorporate the inspiration into a story for the ad campaign. a)
Execution-‐ Advertising Department: May 2011
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3.
Tactic-‐ Incorporate the lifestyle of a bebe man into the ad campaign. a)
D.
Execution-‐ Advertising Department: May 2011
Strategy-‐ Advertise in appropriate mediums fit to the bebe men’s lifestyle. 1. Tactic-‐ Advertise in GQ with print ads located towards the beginning of the magazine on a thicker cardstock paper that stands out from the rest of the ads. a) 2.
Execution-‐ Advertising Department: October 2011
Tactic-‐ Advertise through a direct mail campaign with bebe’s ads and a
coupon to men ages 20-‐35 living in the same household as bebe’s women clientele. a) 3.
Execution-‐ Advertising Department: October 2011
Tactic-‐ Introduce the men’s collection through online ad banners on
websites such as Esquire.com, Complex.com, Espn.go.com, and men.style.com/gq. a) IV.
Execution-‐ Advertising Department: October 2011
Place A.
Budget-‐ $2,000
B.
Objective-‐ Offer bebe’s men’s collection at 12 top door stores for Holiday 2011. 1. Evaluation-‐ bebe men’s collection was offered at 12 top door stores across the U.S. for Holiday 2011.
C.
Strategy-‐ Conduct market research for bebe store’s sales. 1. Tactic-‐ Look at sales statistics for each store from the past two years to determine if the allocation will be a fit. 15
a)
Execution-‐ Chief Financial Officer: March 2011
2. Tactic-‐ Choose a store with ample space that can be dedicated to the men’s collection. a)
Execution-‐ Vice President of Stores: April 2011
3.
Tactic-‐ Close stores with low foot traffic. a)
Execution-‐ Vice President of Stores: April 2011
4.
Tactic-‐ Consider using stores in bigger cities. a)
Execution-‐ Vice President of Stores: April 2011
5.
Tactic-‐ Consider using stores in tourist areas. a)
Execution-‐ Vice President of Stores: April 2011
***Budget is based on annual sales of $800,000. 16
Marketing Research Survey
1. Do you have a significant other that would consider purchasing clothing at bebe stores if we offered a men’s line? Yes ____ No ____ 2. If yes, how often do they shop for clothing a year? Once _____ Twice _____ Three Times _____ Four Times _____ Five Times _____ 3. If So, what is their age? 18-‐24 _____ 25-‐35 _____ 35-‐45 _____ 45-‐55 _____ 4. Where do you shop for men’s clothing? Banana Republic _____ Express _____ JCrew _____ Nordstrom _____ Lord & Taylor _____ Von Maur _____ Macys _____ H&M _____ Other: Please Explain Below ___________________________ 5. What brand do you mostly shop for in men’s clothing? Calvin Klein _____ Diesel _____ French Connection _____ Polo Ralph Lauren _____ Seven for all Mankind_____ Lacoste _____ 17
6. What is most important when purchasing men’s clothing? Selling Price _____ Quality _____ Brand Name _____ 7. How much do men spend on average for an article of clothing? Under $30 _____ $30-‐40 _____ $40-‐60 _____ $60-‐80 _____ $80-‐120 _____ $120-‐200 _____ 8. What article of clothing is most hard to shop for men? (check all that apply) Accessories _____ Bottoms _____ Denim _____ Jackets _____ Outerwear _____ Shoes _____ Shirts _____ Sweaters _____ Sweatshirts _____ Vests _____ Other: Please Explain Below ___________________________ 9. What style of clothing would you feel would be a void in the men’s clothing marketplace. Please explain below. ______________________________________________________________________________ ______________________________________________________________________________ Thank you for participating in bebe’s survey. Please mail this survey
back with the attatched pre-‐paid envelope for a chance to win a $500 bebe gift card. 18
Examples of Ad Campaigns For bebe’s ad campaign, I would like the theme to be subtle as these two ads show from J.Crew and Gap. The clothing is the main focus in these ads. These ads show a variety of items that are offered at the retailers, therefore giving the consumer a sense of what they could expect when visiting the website or store. I would like for bebe’s campaign ad to be straight forward, highlighting all the different merchandise we offer just as these ads do.
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