Marketing report - NOSBYN by Thư Vũ

MARKETING

FALL/WINTER

PLAN

2018

the

a t s i n e Z

n by nosbyn.

CONTRIBUTORS

STUDENTS

Nguyen Truong Anh Minh, Vu Anh Thu, Nguyen Do Minh Chau, Phan Tra Ha Tien, Phuong Ngoc Thien Thanh, Duong Thanh

LECTURER

Phuong Quynh

Rebecca Morris

n by nosbyn.

TABLE OF CONTENT

Mission Statement 05-06

Executive Summary 08-09

Introduction 10-11

Current Marketing Situation 12-26

SWOT Analysis 28-30

Objectives 32-34

Marketing Strategies 36-76

Sales Forecast & Promotional Budget 78-80

Conclusion 82-84

MISSION STATEMENT

n by nosbyn.

n by nosbyn. is the upper market targeted line of the brand nosbyn. n by nosbyn. Reflects the evolution of the nosbyn girl turning to the lady one...

brand

n by nosbyn. respects the original brand values, continues the task of accomplishing the wardrobe of 24-40years old, dynamic, modern and urban women with uncluttered, versatile, effortless fashion pieces. Nevertheless, reflecting the more mature version of the original nosbyn girl, n by nosbyn. Focusing deeply on details and the sensibility of wearer, n by nosbyn. is designed for urban women whose lifestyle are often sophisticated and authentic. They are also women who busy juggling with family, career and other social commitments. n by nosbyn. is born with the mission to help our women accomplish their everyday tasks in the most stylish, yet comfortable way.

story

EXECUTIVE SUMMARY

n by nosbyn.

The Strategic Marketing Plan of ‘n by nosbyn: The Zenista Collection’ - the upper market targeted collection of the brand Nosbyn is developed based on the comprehensive situational analysis from the Survey Data Analysis from Major B. It targets to improve current marketing strategies and define new marketing opportunities to achieve the financial and marketing objectives of the launching of Nosbyn’s upper target line first collection ‘The Zenista’ in Fall-Winter 2018 . A range of strategies will be developed in accordance with the above marketing goals.

MARKETING STRATEGY Product: The first collection of ‘n by nosbyn’ line entitled ‘The Zenista’. The collection aims to dress an urban lifestyle by offering real-life solutions that connects mind, body and spirit with honest materials, pragmatic uncluttered designs, streamlined silhouettes, that appropriate for the demand of the target segment of ‘n by nosbyn’. Price: Value Pricing Strategy is applied in order to strike a balance between cost and quality, also Psychology Pricing Strategy will be recommended in order to respond on emotional levels of local customers rather than logical ones.

Promotion: Beside traditional promotion applied such as markdown, special discount (on event/period), visual merchandising, event launching and online campaign; a ‘get it while it lasts’ promotion strategy is applied via temporary retail space (pop-up store) to stimulate sales and examine potential location for new store establishment. The PR program for this new line is divided into 3 parts: Pre-Launch - During-Launch - PostLaunch with information, images, and PR materials spread and viralized on multi channels (online magazines, channels of influencers, channels of Nosbyn). Place: In this Marketing Plan Strategy, nosbyn is suggested to expand its market by retailing products via multi-channels including e-commerce platform and considering new brick-n-mortal established in highly potential area (district 2) .

FINANCIAL PLAN The number of items sold in six months period from launch of The Zenista Collection is estimated in the Sales Forecast. 2.6% of total revenue is planned for Promotional Budget to invest in marketing activities. Eventually, a profit and loss statement of six months sales is calculated with profit expected to take up approximately 50% of total revenue.

INTRODUCTION

n by nosbyn.

The target of this Marketing Strategy Plan are as follows: to successfully reach the market that the new upper level line of Nosbyn - ‘n by nosbyn’ targeting at, to expand the brand via digital media in order to achieve greater recognition, to define and examine the opportunities and possibilities of establishing new physical store in potential location via temporary retail method (pop-up store), and to achieve financial goals. Nosbyn is a clothing brand based in Vietnam specialized in womenswear and pursuits ‘minimalism’ style. Nosbyn. follows the B2C business model. The brand takes full control from ideas, sourcing to manufacture products. Starting from an online store, the brand now has opened 2 physical stores in district 1, HCMC. The target market of the current Nosbyn line falls within 18-30 years old, who are university students, fresh graduates and office workers. In Fall -Winter 2018, Nosbyn plans to launch its new fashion line targeted age group from 24 -40 years old who are fresh graduates, young professionals, business/ office women who are Independent, radiant, dynamic, modern, fully engaged in life, with higher income and are willing to spend more for better quality.

Nosbyn has built its reputation for ‘affordable local fashion brand’ for years and the popularity for ‘minimal’, easy-towear design. This marketing strategy plan is developed for nosbyn’s upper market line whose lifestyles and their approach to fashion are different from the current customer segment of Nosbyn. The researchers have analysed the macro environment and the brand’s SWOT to gain an insight into the strengths (high brand awareness, highly functional design, affordable price, strategic store location), weaknesses (lack of brand identity, design is not persuasive enough for higher market level, website is confusing), opportunities (increase in middle class, decrease in corporate income tax, the development of e-commerce retail), as well as threads (the enter of global fashion giants, the rise of many local brands targeting the same segment, designs are easily copied) of the brand in order to develop appropriate solutions and strategies to successfully launch and sustain this new line of nosbyn - ‘n by nosbyn’ with ‘The Zenista’ as the debut collection in F/W 2018.

CURRENT MARKETING SITUATION

n by nosbyn.

product Currently, Nosbyn.’s offers mainly target the group of female at the age between 1830 years old, who are university students, fresh graduates and office workers. Since having stable income and yet getting married, this segment is willing to spend a certain part of their budget into clothing and appearance in order to be appropriate with their social image and daily contexts that they have to get involved in. Clearly understandings the demands as well as purchasing power of target customers, Nosbyn. provides woman a wide range of clothing with different categories, including top, dress, pants, skirt, t-shirt, outerwear, sleepwear and accessories. Simplicity is considered as the core element of Nosbyn.’s designs. As easily noticed, the silhouettes of all categories are often simple in cut to make the wearers feel comfortable and movable throughout a busy day. However, there’s always a twist to make the plain cut more eye-catching and trendy. The twist, trim details or prints depending on the trends of the time that

match the brand’s personality, well emphasizes the femininity and elegance of woman. The colors chosen align with the brand’s image, carried out from season to season, are bright color tones white, pastel pink, baby blue… Lately, Nosbyn. launched the new summer collection with floral and fruity prints exclusively designed by famous designer Foxtly, also, adding some new items with fabric of the season, gingham. Products available in 4 sizes from XS-L, mainly freesize with adjustment to fit Vietnamese customers. Fabrics selected locally includes jersey, cotton poplin, lace and lightweight khaki, extremely breathable and suitable for the weather in Vietnam. Price at Nosbyn. is affordable, starting from 279,000 VND for a basic t-shirt, 400,000-700,000 for skirts, tops & pants; the most expensive category is dresses, around 700,000-900,000 VND. Pricing strategy seems reasonable for customers but still competitive, compared to other international brands exist in the market.

price 14

Top

Dress

Signature

Pants

Skirt

T-shirt

Outerwear

Sleepwear

Bags

Sandals

distribution Nosbyn. follows the B2C business model. Overall, Nosbyn. takes full control from ideas, sourcing to manufacture products in order to offer their customers the quality products at affordable price. Each month, in-house designers are in charge of developing new designs and sourcing materials from local markets within Ho Chi Minh city. New arrivals are launched continuously to refresh the store. Initially founded as an online shop, up to July-2017, Nosbyn. successfully opened 2 standalone stores in the most crowded streets of Ho Chi Minh City while maintaining their strong e-commerce service. Besides, the brand also distributes their merchandise abroad, especially in US & Korea. The first physical store was opened at 3A Station, then moved to 77 Mac Thi Buoi, D1, near Nguyen Hue walking street, highest traffic area of HCM City. May-2017, Nosbyn. launched their second store with larger space at 28 Nguyen Trai, District 1, a popular shopping street.

Stores of Nosbyn. well translates their DNA, bright tones, minimal interior and white lighting. Clothes are well organized on shelves with shoes underneath like a closet and simple window display, often showcases new arrivals and accessories. In order to support customers purchasing products, Nosbyn. maintains their online service, including website, Facebook & Instagram. One particular characteristic of Vietnamese customers is that they prefer purchasing products via Facebook & Instagram than firmâ&#x20AC;&#x2122;s official website; therefore, Nosbyn. constantly updates lookbooks and new arrivals on these channels. Although being one of the pioneers in using e-commerce service, website of Nosbyn. is slightly difficult for users to make the purchase. Product categories are not featured on the home page, taking several steps to discover a product and also, product availability on website are not as various as on Facebook & Instagram. Shipment is served both locally and internationally.

window display

in-store display

market characteristics

“Vietnam is a healthy market for textile-garment industry in terms of both manufacturing and purchasing performance, especially Ho Chi Minh City, commercial hub of the country.” In article ‘Vietnam’s textile-garment industry in the post-TPP period’ (Vietnamnet, 2016), although the labor costs are higher than that of Bangladesh & Myanmar, Vietnamese workers are more skilled. Another competitive advantage is the convenience of sourcing fabrics & trims. There are many fabric wholesale markets in HCMC, such as An Dong market, Tan Dinh market, Soai Kinh Lam market where buyer can find variety of fabrics. Having resources locally reduces the amount of time investing in sourcing, cost of delivery as well as guarantee the availability and quality of fabrics in order to focus on design and manufacturing process. As the General Statistics Office (GSO) reported, in 2016, the total revenue of garment retail increased 10.6%, the second highest sector of total retail goods revenue, after foods and consumer spending is estimated to

reach 4001280.83 VND Billion in 2010, largely driven by the burgeoning middleclass, these fast increasing percentages indicate consumer confidence in purchasing power. In addition, according to the Vietnam Market Research Trends 2016 by M2-Marketing & Media Network, despite Vietnam being a cash payment economy, the number of e-commerce sites surprisingly reached 50,000 in 2015, which shows the high demand of online shopping in general and for fashion in specific. Combining two reports, the result can be seen is that to win with all levels of consumers in this competitive race, retailers not only have to offer a wide range of products to meet the various demands of customers but also focus on the variety of distribution channels and more importantly, the speed, convenience and comfort elements which make their offers/ distribution channels stand out compared to other competitors.

Target Segment DEMOGRAPHIC

Gender: Female Age: 24-40 years old. Income: above 10 million Location: Urban area, especially HCM City Occupation: fresh graduates, young professionals, business/office women. Personality: Independent, radiant, dynamic, modern, fully engaged in life. Lifestyle: sophisticated, juggling with family, career and other social commitments.

PSYCHOGRAPHIC

As n by Nosbyn. is an upper branch of Nosbyn., the target market of n by Nosbyn. is slightly sophisticated than that of original Nosbyn. With a GDP growth exceeding worldâ&#x20AC;&#x2122;s average, Vietnamese customers are enjoying increasing prosperity, less price sensitivity and more confidence. Price is no longer the main influence on purchase decisions. Instead, regarding apparel product selection, two main driven factors are taste for conscious customers and brand name for conspicuous consumption. n by Nosbyn. targets 24-40 year-old women who have high education and social status; strong and independent financial status, above 10 million. They constantly update and adapt trends yet still require to be functional and comfortable. These women

consciously support local brands which offer uncluttered, versatile, effortless fashion pieces with high quality at more reasonable price than international brandsâ&#x20AC;&#x2122; similar offering. n by Nosbyn. acknowledges that their customers are also women who busy juggling with family, career and other social commitments. Due to the fast pace of life, beside stores in accessible location, organized layout, they also adopt shopping online. Regarding store selection, factors including convenient location, store personnel, product assortment and display play equally important influential roles toward their buying decisions.

competitive

Target market: Women, 20-30 years old Freelancers, Celebrities Adore feminine style Price range: 830,000-3,250,000 VND Strength: Consistency in direction Celebrities endorsement Stores in HCM City & Hanoi Weakness: High price Design for ideal body only Not versatile

Target market: Women 18-35 years old Well educated & professionals Brand consciousness Trend pursuer Price range: 425,000-3,000,000 VND Strength: Global presence Simplistic and appealing store layout Fast fashion production Cost efficiency e-commerce & store Weakness: Low quality fabric Lack of marketing communication

environment

Target market: Women 20-35 years old Well educated & professionals Brand consciousness smart casual dresser Price range: 750,000-3,200,000 VND Strength: Global presence Store location Variety of product offerings Weakness: High price

Target market: Women 18-30 years old University student, fresh graduate & office worker Support local brands Price range: 320,000-1,900,000 VND Strength: Different categories Trendy designs Store & e-commerce Weakness: Lack of consistency in term of design philosophy

Price

Fabric quality

n by nosbyn.

Trendy

Versatility

Macro Environment POLITICAL & LEGAL

ECONOMICAL

Plan of decreasing corporate income tax: On May 29th, 2013, at the plenary session of the National Assembly discussed the Draft Law of amending and supplementing a number of articles of the Law on Corporate Income Tax, the majority of delegates agreed to decrease corporate income tax from 25% today down to 22% in the 2014 and 2015 to help enterprises overcome difficulties, to expand production, increase competitiveness. As a small enterprise, Nosbyn. can increase the amount of merchandises, expand their distribution to increase profit and compete with other brands.

For economics, Vietnam maintains a stable and high economic growth (7% in average for the last decade). Local enterprises are facing up to challenges in access to expensive credit and financial management due to high inflation (911%), high interest rates of saving (1317%/year), and to currency devaluation (three times in 2010). Consumers have benefited from increasing levels of disposable income in recent years. Indeed, between 2010 and 2015 disposable income increased (in real terms) by a 32%. In turn, consumer spending increased 33% over the same period, driven in large part by expenditure by the burgeoning middleclass, which is also main target of n by Nosbyn. The faster levels of disposable income is increasing, the bigger consumer spending and so the larger the target of n by Nosbyn. is.

TECHNOLOGICAL Mobile drives internet penetration and habits in Vietnam. In October 2012, Facebook hit 8.5 million users in Vietnam; in March 2013 it was 12 million. Then in January 2014, Facebook reached 20 million users in the country. Vietnam is adding one million Facebook users per month. Given this rate of growth, Vietnam is at 24 million Facebook users this month and will hit 30 million by October this year. Vietnam is one of Facebook’s fastest growing countries. So Apple’s growth is no anomaly. In terms of the internet and mobile, Vietnam is growing very quickly in every space. Online shopping is strongest for gaming, utilities, mobile top up, fast fashion, travel, health supplements and household appliances to date.

SOCIAL & CULTURAL The middle and affluent class (MAC) in Viet Nam will double in size between 2014 and 2020, from 12 million to 33 million. A member of the middle class is defined by a monthly income of VND 15 million or more, which gives them significant purchasing power. The middle class is thought to drive more than 50% of country’s total consumption.

SWOT A N Y LY S I S

n by nosbyn.

STRENGTHS High brand awareness towards young segment in Ho Chi Minh City. Highly functional designs, high quality fabric. Affordable price range. Strong online communication. Strategic store locations.

WEAKNESSES Design philosophy focusing on simplicity is not strong enough to create brand identity. Lack of signature line, only crop-top. Price range is appropriate for students, has yet targeted to customers with higher purchasing power, causing narrow down potential target segments. Website is confusing.

OPPORTUNITIES Expand target segment due to the increasing number of middle class. Expand product line to meet potential segmentsâ&#x20AC;&#x2122; demands since the decrease of corporate income tax. Expand distribution channels to other cities and provinces. Expand e-commerce service to reach more customers in other regions.

THREADS Simple designs cannot compete with highstreet fashion. Market becomes saturated since the enter of new players and existing brands, both global and local brands. Designs are easily copied, lose sales to competitors. Complicated website causes loss in online sales.

OBJECTIVES & S. M. A. R. T GOALS

n by nosbyn.

objectives AVOID RISKS OF PRODUCT LIFE CYCLE

MAINTAIN & INCREASE LOYALTY

Fashion brands as well as their products typically move through four stages: Introduction, Growth, Maturity and Decline. Nosbyn with their current product line is now considered to be in the Maturity Stage when they have already reached their target group of customers and their performance is becoming ordinary to other lines that are emerging and taking advantages of newest trends and other different groups of customers ( for example : lower or higher market ). Therefore, this new product line is expected to effectively push Nosbyn back into the competition with both old and new competitors by refreshing themselves and expanding their ability to reach new customer groups.

Maintaining sales to existing customers is important to long-term revenue growth and profitability. Adding new product line will enable NOSBYN to not only approach new targets but also to sell more to existing customers without of the effort and cost of acquiring new customers. This helps to increase customer loyalty and grow revenue per customer.

MEET FAST CHANGING DEMANDS Nosbyn has always been loyal to the concept of simplicity and affordability as their core concept since the very first start, however, customer needs always change throughout the time. For example, they may need different levels of product quality or performance to meet their own experiences. That is why introducing new products that meet changing customer needs is an important driver of new line expansion.

COMPETE MORE EFFECTIVELY ENTER NEW CUSTOMER SECTORS

SEPTEMBER-2018

s.m.a.r.t goals

( Introduction stage ) At least : _ 80% of target guests to join the launch of the new collection by 1st September 2018 _ 80% of the attended guests and value customers to communicate on social media, through the world of mouth...etc. about the launch NOSBYN A/W 2018 Collection during month _ 30% of target customers to be informed about NOSBYN’s new clothing line by 30th September 2018 _ 20% of target customers to understand the concept of the A/W 2018 “Zennista” Collection by 30th September 2018 _ 40% of loyal customers to come to Nguyen Trai store to check out the new collection by 30th September _ 30% of loyal VIP customers to make purchases from the new collection by 30th September 2018 _ 20% of total purchases ( from the new collection ) to be made by first-time customers by 30th September 2018 _ 50% of total purchases to be made by customers who also purchase from competitors by 30th September 2018 _ 30% of purchases to be crossaled with basic signature products as well as previous collections by 30th September 2018.

OCTOBER/NOVEMBER-2018 ( Growth - Maturity stage ) At least : _ 70% of target customers to have known about NOSBYN’s new clothing line by 30th November 2018 _ 50% of targets customers to understand the concept of the A/W 2018 collection “Zennista” by 30th November 2018 _ 70% of loyal customers have come to the store for the new collection at least once, by 30th November 2018 _ 50% of loyal VIP customers to make purchases from the new collection by 30th November 2018 _ 30% of total purchases ( from the new collection ) to be made by first-time customers by 30th September 2018.

_ 80% of total purchases to be made by customers who also purchase from competitors by 30th September 2018 _ 30% of total purchases to remain as cross-sales with basic signature products as well as previous collections by 30th November 2018 _ 80% of online feedbacks on social media and fashion channels to be positive by 30th November 2018 _ 70% of in-store feedbacks and experiences to be positive by 30th November 2018 _ 60% of stocks to be run out by November 2018.

DECEMBER-2018 ( Decline stage ) At least: _ 80% of target customers to have known about NOSBYN’s new clothing line by 31th December 2018 _ 70% of targets customers to understand the concept of the A/W 2018 collection “Zennista” by 31th December 2018 _ 80% of loyal customers have come to the store for the new collection at least once, by 31th December 2018 _ 70% of loyal VIP customers to make purchases from the new collection by 31th December 2018 _ 40% of total purchases ( from the new collection ) to remained being made by first-time customers by 31th December 2018 _ 80% of total purchases to be made by customers who also purchase from competitors by 31th December 2018 _ 30% of total purchases to remain as cross-sales with basic signature products as well as previous collections by 31th December 2018 _ 80% of online feedbacks on social media and fashion channels to be positive by 31th December 2018 _ 70% of in-store feedbacks and experiences to be positive by 31th December 2018 _ 60% of new products to be sold at original prices by 31th December 2018 before seasonal sales _ 70% of seasonal stocks to be run out by 31th December 2018.

MARKETING STRATEGIES

n by nosbyn.

FALL/WINTER 2018

the

a t s i n Ze

n by nosbyn.

Koko Dress

Kanso Shirt

Shizen Shorts

Yugen Dress

Fukinsei Dress

Datsuzoku Croptop

Seijaku Skirt

Shibumi Skirt 43

Shibui Long Shirt

Shibusa Trousers

Yasuragi Shirt

Ansei Trousers

Product STRATEGIES

When planning product marketing initiatives, itâ&#x20AC;&#x2122;s important to consider whether retailer will be aiming to promote their brand or specific products. As for NOSBYNâ&#x20AC;&#x2122;s case this time the focus will be on the new clothing line, driving awareness of key items is strongly advised in order to best convey the message.

LIFESTYLE ASSOCIATION

CONCEPT Shibumi: It is an overarching concept, an ideal. It has no precise definition in Japanese, but its meaning is reserved for objects and experiences that exhibit in paradox and all at once the very best of everything and nothing: Elegant simplicity. Effortless effectiveness. Understated excellence. Beautiful imperfection. Shibumi, like Zen awakening, is not something to be sought after or achieved. It comes naturally, or it doesn’t come at all. It’s a matter of soaring through knowledge and touching down at simplicity.

UNIQUE DESIGNS Key details of the collection is to emphasize the special twists at sleeve, neck and waist. There are many ways to make a clean cut come sophisticated, adding a knot, leather belt or even just a small metal hoops, the minimalism game is brought into the next level. There are three details that will be applied into the design of this collection : - Tie-waist belt - the belt is at one side of your waist after being tied. - The core fabrics of collection is linen, which is also key trend of this season. - Japanese-inspired details like wrap skirts, kimono waist band.

CORE ITEMS The core items of collection wil be Datsuzoku Croptop, an updated version of signature croptop with the highlight is Japanese-inspired kimono waistband. Besides, the other items made of linen fabric are also key items as this fabric is the key trend of season. The twist in details helps soften the hardness of linen.

The Zenista collection of A/W18 dresses an urban lifestyle by offering real-life solutions that connects mind, body and spirit with honest materials, pragmatic uncluttered designs, streamlined silhouettes. The Zenista offers modernity with souls, and clothes that suggest life as art practice, being in the moment, capture less and see more, tell your story and listen to the stories of others. Besides, though this clothing line will be designed to target at a higher-profile group of customers, other younger customers who could have purchased from NOSBYN might also be potential as well. This means that NOSBYN will go into the mixture of both mass production of clothes and customized production of clothes - specifically for high profile clients with more personal demands and needs ( for example : higher quality in fabrics, textures, perfection of the seams, availability of plus sizes if needed… etc. ). In view of that, the mixed expectations of customers for the collection which are also our strategic product offerings will be : Good quality and long lasting clothes Not cheap, but still reasonable prices Good value for their money Opportunity to order customized pieces or fixes need Warranty on all customized clothes purchased Good customer service, both before and after purchase.

PACKAGING A good packaging is always an essential part of the marketing strategy of a fashion brand - especially for high clothing lines such as NOSBYN’s A/W 2018, as it brings the customers an invisible feeling of being valued and admired by others. It will strongly help to promote the new product concept as well as the refreshed branding of NOSBYN. To match the ideal concept of the new collection, reusable shopping bags ( can be called NOSBYN’s bag-for-life ) will start to be offered from the launch of new season. It will be made from kraft paper with the “Zennista” logo simply printed on the front.

assortment plan 52

Pricing STRATEGIES Based on previous pricing research, Value Pricing Strategy will be applied for this A/W 2018 collection of NOSBYN as this strategy is considered to sit somewhere between the budget and luxury segments. The key to value pricing is to strike a balance between cost and quality. (April M, n.d) The reason is, the target group of customers of this line will not be willing to sacrifice quality for extremely low prices, but they also are not willing to pay more than the real value of the product simply for just a popular local brand logo. Customers in this group look for clothings that will last several years or more, making not only the impressive designs but also the durability of materials their prime concerns. Therefore, NOSBYN does not need to work too hard to push prices low nor over-inflate prices for brand equity. Rather, the strategy should be applying a bit higher than current standard but still reasonable mark up to new products. The key to sales success will be in highquality materials, unique designs and manufacturing. Besides, with the economy considered to be developing but still slow compared to other countries, price have always remained a major concern for Vietnamese customers, especially high-profile ones who seek to develop themselves out of Vietnam ( as they also have to save money for that ). Due to that, Psychology Pricing Strategy will also be recommended in order to respond on emotional levels of local customers rather than logical ones. For instance, “590,000 VND” is psychologically “less” in the minds of them than”600,000 VND”. It’s a minor distinction that can make a big difference. (Leigh R, n.d)

retail price plan 56

Marketing PROGRAM

Marketing Program for the new line N by nosbyn is divided into 3 stages: Pre-launch During-Launch Post-Launch

pre-launch

JUNE

SAVE THE DAY

Access to market research in details, draw up to marketing plan for new line launching. Planning campaign & lookbook shooting (collaborate with La Dan).

Email/newsletter sent to VIPs and current customer (database) announcing new line. Save The Date e-invitation sent to Press/ VIPs/Influencers.

AUGUST

ONLINE CAMPAIGN

Preparation for Visual merchandising installation. Preparation for Launching day: Invitation/Thank you letter prints. Location . F&B. Product Placement Photo Booth Door gifts

Run online campaign to create awareness and attention for the new line. (teaser, lookbook, Instagram & Facebook update)

COUNTDOWN Mini game (to tease audience and increase customer engagement)

launch SEPTEMBER

OCTOBER

2 FIRST WEEKS ONLINE CAMPAIGN encore

Preparation for pop-up store launch (end of October - early November)

Physical Invitation sent

Announcing POP-UP Store Opening in Sadec D2 (on social media channels, AnyArena Magazine, Create Facebook Event)

Launching day: Session 1: Press/Media/Influencer Session 2: Friends/VIPs/Customers Discuss/negotiation the pop-up store operation with Sadec District 2 management board.

POP-UP STORE LAUNCH - 3 DAYS (Special Promotion, buy 2 get 1 free + voucher to shop at Sadec District)

COUNTDOWN In-store & Online sale up to 50% Christmas theme VM installation

post -launch 60

promotion Pop-up store -WHAT IS POP-UP STORE? Pop-ups provide retailers the ability to test and sell products quickly and costeffectively in any market. Established and luxury brands are using pop-ups to test new geographic locations and markets, and to capture seasonal sales (Forbes, 2016).

-WHY SADEC DISTRICT 2? Sadec District 2 is a retail area in the heart of District 2’s Thao Dien where shoppers can have a multi-brand shopping experience (similar to an open space concept store but each brand has its own store). The concept of the Zenista line matches the concept of Sadec District 2 very well since Sadec District 2 offers a range of Vietnamese artisan product, already famous for their gift-perfect ceramic, wood and glass homewares inspired by the artisans of the Mekong Delta - they’ve brought in designers Lam Boutique and Catherine Denoual Maison, along with purveyors of fine leather goods NEYUH and Cincinati. Nosbyn, will shares the benefits with neighbour brands which have similar target Segments (new urban, modern residents in search for authentic, contemporary Vietnamese design. Opening a 3 days pop-up store in Sadec District not only benefits Nosbyn from selling and introducing the clothing line, allow a business to extend its brand and build awareness to the new potential market but also help the brand to test the possibility for opening a new store in District 2, please refer to the PLACE segment.

SET UP Collaborate with Sadec District, amaii, and Ne Yuh leather to create setup for the area used in order to generate not only nice setup but a multi-brand shopping experience. Installation materials: Wooden clothes racks (2 pieces), mobile dressing room, temporary cashier, bamboo sacks (or bucket) to put flower from Sadec District. Ceramic tea set from amaii. Stimulate sales with special promotion New Collection’s pop-up store Special Promotion 20% off from second items purchase for 1 bill => generate the urgency to purchase Collect customer’s information for later feedback, customer service, customer preference research

The â&#x20AC;&#x2DC;storeâ&#x20AC;&#x2122; will take the space in the middle of Sadec District 2 retail space (usually used to display ceramic products of Sadec District.

Launching Event A launching event is crucial to announce the establishment of Nosbyn’s new line, in order to catch the attention of consumers and distinct this line from the current line of nosbyn. Taking place in nosbyn Nguyen Trai (where the new line is exclusively sold), the event is divided into 2 sessions: Session 1: Media/Press/Influencer Session 2: VIP customer/Winner Countdown mini game

ORGANIZATION Session 1: Objectives: This session is specialized for Press/Media/Influencer in order to gain official publicity for New Collection of Nosbyn, to introduce the personality and spread the information to audience/ consumer via official media channels (websites, magazines, social media fanpage) and viral the event on channels of influencers Activities: (event is expected to be held from 3:00pm -6:00pm) 2:30-3:30 : Welcome guests + Press Release distributed to guests + Photo taking at photobooth 3:30 - 3:45 : Nancy’s welcome speech + Introduce Nosbyn’s new clothing line 3:45 - 6:00 : Networking + photo taking 5:30 - 6:00: Farewell + Door gift sent to guests Mini-game: customer take a photo shopping new collection, post on their social media with hashtag #nbynosbyn #zenista #nosbynfw18, they will receive a printed version of the photo they post. Viral the event and new collection NOTE: Free flow drink + finger food

Session 2: Objectives: This session is specialized for nosbyn’s VIP customers and customers who win the COUNTDOWN campaign in order to generate traffic + sales with Special Promotion for launching day. Also to create brand’s relationship with customer in order to retain customer loyalty Activities: (event is expected to be held from 6:30pm - 9:00pm) Welcome guests + photo taking Distribute free drinks and finger food Customers enjoy and shop new collection as well as other stuffs available in store Mini-game: customer take a photo shopping new collection, post on their social media with hashtag #nbynosbyn #zenista #nosbynfw18, they will receive a printed version of the photo they post. Viral the event and new collection

Online Campaign According to the survey conducted in Major A, respondents said they, although, not often purchase product through online platforms, prefer to go on online channels for products browsing and inspiration (47.2% Instagram, 33.8% Facebook). Hence marketing strategy for nosbyn’s new line will be “Digitally focus”. Moreover, digital marketing is more efficient as it costs much lesser but reach wider audience and has stronger viral effect than traditional marketing tools/ platforms (magazine coverage, advertising on websites, etc). An online Countdown campaign to unveil nosbyn’s new clothing line. The campaign will be held 3 weeks before the Launching Day. Objectives: Generate curiosity about the coming collection. Create brand awareness. Generate and increase customer engagement + traffic visiting social media and website .

Distribution STRATEGIES

New line of n by nosbyn. will be launched through two main channels: Brick & Mortal Online

online -WHY E-COMMERCE SITE? According to Q&MEâ&#x20AC;&#x2122;s E-commerce Report 2016, E-commerce in Vietnam is a fast growing market at a rate of 40% every year with 70% of urban residents use E-commerce in Vietnam. Fashion is the top item purchased on e-commerce site. Compared to shopping on Facebook, shopping on E-commerce site has several outrageous advantages that generate better customer experiences.

OTHER CHANNELS

ADVANTAGES

Therefore, beside Facebook, n by nosbyn is recommended to be retailed on an E-commerce site . This is also a solution to distinct this new line to the current line of nosbyn. We suggest ‘n by nosbyn’ to be retailed on LeFlair (www.leflair.com), for several reasons: - LeFlair is one of very few e-commerce sites in Vietnam that specialized in retailing branded fashion and beauty. - The company had an average monthly growth rate of 23 per cent in revenues and had delivered about 40,000 orders in the first year of its operation. (Reuters) - LeFlair’s approach and focus on brands allow it to grow at a fast pace with reasonable marketing expenditures without compromising on the quality of the products or customer service, as well as to work on its long-term vision. - Professional, attractive, minimal and highly interactive website compared to its counterparts.

Retailing on LeFlair, n by nosbyn will be able to: - Expand target market (to higher spenders). - Raise brand awareness and online order. - Being promoted & dvertised using LeFlair’s operation. - Distinct the new line from nosbyn’s current line (higher market-higher price) - Use LeFlair’s delivery system .

“We found LeFlair very attractive because of its very experienced team and its focus on a segment, fashion online, that we know well. Vietnam is a high growth and underserved country, while the platform can eventually be expanded to the neighboring countries adding scalability to the model,” said Michele Appendino, the chairman at AME Ventures (Reuters).

With a superb city location, District 2 is now one of the top choices for property investment as well as apartment renting. Mega development projects under progress such as Gateway Thao Dien, Matsuri Thao Dien and The Estella Heights will totally change District 2â&#x20AC;&#x2122;s character and appearance in the next few years.

brick-n-mortal RETAIL LOCATION N by nosbyn - The Zenista collection is recommended to be retailed in the store in Nguyen Trai, in order to remain the exclusivity of an upper market line. Moreover, Nguyen Trai store has larger space for the collection to be displayed in a separate area to differentiate its from the current line.

NEW PHYSICAL LOCATION Considering opening new store to retail solely ‘n by nosbyn’ line Location: Thao Dien, District 2

-WHY THIS LOCATION? More and more retailers and businesses set up places in District 2, also known as An Phu and Thao Dien, is about a 20 minute drive northeast of Saigon’s centre. District 2 is a rapidly changing area with modern and luxurious villas springing up everywhere, attracting a healthy Western expat community (City Pass Guide) In the past, District 2 was one of the poorest parts of Ho Chi Minh City due to the separation by the Saigon River from the city centre. However, it is now one of the prioritized area for investment by the government and is lined up to be the new city centre for Ho Chi Minh City.Thanh Nien and Tuoi Tre, the two biggest newspapers in Vietnam, once described that the District 2 would be as modern as Singapore and Hong Kong.

Besides, the transportation to District 2 will become much more easier when the metro, whose route passes through District 2, comes into use. This will be the first metro in Vietnam, and it will help Ho Chi Minh City to catch up with other developed cities in the world. The first phase of the Ho Chi Minh City Metro train network – Line 1 (scheduled to be completed between 2018–2020), will connect the Thao Dien, An Phu area with District 1 (Ben Thanh, Opera House, Ba Son Shipyard) In order to test the market demand and preference for n by nosbyn, we suggest opening a 3 days pop-up store in Sadec District 2 (Please refer to PROMOTION section for pop-up store operation detail).

Thao Dien DISTRICT 2

RESIDENCE/PEDESTRIAN TRAFFIC

TRANSPORTATION

New luxurious neighborhood, Western expatries community. Modern, urban, high income Saigonese people. (as it is where located many of the most luxurious apartments and villas in HCMC)

Connected to: Binh Thanh district: via 6-lane Thu Thiem Bridge 1 (2008) and Saigon Bridge 2 (2013) District 1: via Thu Thiem Tunnel (2011) and Thu Thiem Bridge 2 (due for completion in 2018), and will be even easier in the future to go to District 1 to District 2 when the Metro route comes to use District 7: At 2km-long, the Phu My bridge crosses the Saigon River, connects Districts 2 with District 7 — an urban district mainly targeted to high earner Vietnamese and expatriates community.

SHOPPING DESTINATIONS Trade center: Vincom Mega Mall Thao Dien Parkson Cantavil Markets: Saigon Outcast Annam Gourmet Naman market Xuan Thuy street: Sadec District 2: Sadec District, Amaii, Ne Yuh Leather, Cincinati, Lam Boutique, Catherine Furniture stores

LEASING PRICE Approximately US$10/sqm per month (Namhouse)

VISUAL GUIDELINES

n by nosbyn.

Window Display

Window display is rotated every month to refresh the store and draw attention towards customers. Using materials and props currently available in store and easy to find is to create comfortable and friendly atmosphere. Besides, using the props sponsored by Sadect District 2.

In-store Display In-store display is giving more space, less items than usual display of orginal Nosbyn as n by nosbyn. is higher branch. Core items of collections will be displayed on table, other items are hanged on the racks.

SALES FORECA ST & PROMOTIONAL BUDGET

n by nosbyn.

PROMOTIONAL BUDGET

SALE FORECAST

PROFIT & LOSS STATEMENT

DISCOUNT VALUE

CONCLUSION

n by nosbyn.

Limitations Changing and modifying brand identity - in NOSBYNâ&#x20AC;&#x2122;s case, itâ&#x20AC;&#x2122;s the new clothing line for A/W 2018 - is always difficult and entails extensive planning so that the information about the change could be conveyed to the right target customers. However, to every fashion brand not only NOSBYN, change is often met with resistance - which may cause the brand to lose its valuable loyal customers. (Natasha, G n.d) Besides, the core concept of NOSBYN has always been simplicity since the very first start and there has not been any exception informed for the upcoming collections yet. Comparing to the hottest international brand in town at the moment which is also a relative competitor - ZARA, this is considered to be a big disadvantage for NOSBYN in expanding and gaining market shares due to the lack of variety in styles. As a further matter in 2018, there will not be only ZARA but also Uniqlo, H&M, Pull&Bear, Stradivariusâ&#x20AC;Ś - the biggest international fast fashion brands entering this emerging market. They all have such relative price ranges with both the current and new clothing line of NOSBYN, the same quality, same buying experiences, however with a much longer list of product offers and decisive promotions, for they are all able to take huge advantage of economies of scale. Consequently, the competition is surely going to be very tough for not only NOSBYN but also other local brands from this strongly developing period of fashion industry in Vietnam.

Recommendations As mentioned, the key to sales success of the new collection will be in quality, strategic marketing planning and the invisible psychologic feels that the concept “Zennista” brings to the customers. However, in the view of the risky and competitive situation above, those basic and standard strategies may not be enough for NOSBYN to stand out amongst their competitors. Therefore, focusing on Customer Relationship Management (CRM) strategy, which is about managing long-term relationship with valuable customers, is strongly recommended to NOSBYN as their best strategic tool to stand out in order to win in this upcoming competition. Then, there will be two ways that NOSBYN can apply CRM into their business : the first one is collecting customers’ feedback to improve services and adapt the right marketing channels for each area; the other is understanding customer’s interests and patterns in order to customize products based on the current demand of customers. By way of illustration, to make the best use of every store visit, CHANEL has been making strong effort in collecting customer’s contacts during their first purchase in order to start building long-term relationship, using CRM database system. The more detailed customers are understood and remembered, the more they feel appreciated and hard to refuse anything from the staff. The more sales advisors know about the needs and wants of their customers, the more able they are to give the best advice to their customers by offering mix and match which will lead to high amount of cross-selling. Consequently, using CRM system in store can help NOSBYN’s sales advisors a lot in keeping in touch with valuable customers and boosting repeat purchases from time to time. In another word, customer loyalty can be considered as the critical key for the long-term success of NOSBYN in the future. 84

REFERENCE LIST

Burrage, R (2017), “Vietnam consumer market trends 2016 - Cimigo News & Events”, “Cimigo News & Events”, accessed 6 august 2017, <http://blog.cimigo.com/vietnam-consumer-market-trends-2016> “Vietnam’s middle class set to double by 2020: BCG”, (2014, January 06, accessed August 06, 2017, <http://www.amchamvietnam. com/vietnams-middle-class-set-to-double-by-2020-bcg> “Purchasing power increases slightly”, (n.d.), accessed August 06, 2017, <http://blog.cimigo.com/vietnam-consumer-market-trends-2016> “Vietnam - Doing Business”, (n.d.), accessed August 6, 2017, <http://www.doingbusiness.org/~/media/wbg/doingbusiness/documents/profiles/country/vnm.pdf> “Consumer Lifestyles in Vietnam - Euromonitor International. (n.d.)”, accessed August 6, 2017, <http://www.euromonitor.com/consumer-lifestyles-in-vietnam/report> “Pestle Analysis Of Vietnam. (n.d.)”, accessed August 06, 2017, <https://www.ukessays.com/essays/economics/pestle-analysis-of-vietnam-economics-essay.php> “UKEssays (2017), “Pestle Analysis Of Vietnam , accessed 06 August 2017, <https://www.ukessays.com/essays/economics/pestle-analysis-of-vietnam-economics-essay> “Bdg-vietnam.com”, “Vietnamese consumer behavior is exhibiting less price sensitivity and more confidence | BDG Vietnam”,accessed 06 August 2,<http://bdg-vietnam.com/de/about/news/details/items/vietnamese-consumer-behavior-is-exhibiting-less-price-sensitivit > “VietNamNet News. (n.d.)”, accessed August 06, 2017, <http://m.english.vietnamnet.vn/fms/special-reports/151885/vietnam-stextile-garment-industry-in-the-post-tpp-period.html> “Citypassguide.com. (2017)”, “Why the Middle Class is Vietnam’s Future”, accessed 06 august 2017, <https://www.citypassguide. com/en/living/ho-chi-minh-city/working/blog/why-the-middle-class-is-vietnams-future> “Vietnam's Urban Middle Class: Rapidly Growing, Slowly Awakening. (n.d.)”, accessed August 06, 2017, <https://kyotoreview.org/ yav/vietnams-urban-middle-class-rapidly-growing-slowly-awakening/> “Hr.wayne.edu (2017)”, “S.M.A.R.T. Objectives - Wayne LEADS - Human Resources - Wayne State University”, accessed 06 August 2017 < http://hr.wayne.edu/leads/phase1/smart-objectives.php> “Smallbusiness.chron.com. (2017)”, “Four Reasons to Expand a Product Line”, accessed 06 August 2017 <http://smallbusiness. chron.com/four-reasons-expand-product-line-55242.html> “Yourcoach.be. (2017)”, “S.M.A.R.T. goal setting | SMART | Coaching tools | YourCoach Gent”, accessed 06 August 2017 <http:// www.yourcoach.be/en/coaching-tools/smart-goal-setting.php> “M.english.vietnamnet.vn. (2017)”, “English - VietNamNet News.” , accessed 06 August 2017 <http://m.english.vietnamnet.vn/fms/special-reports/151885/vietnam-s-textile-garment-industry-in-the-post-tpp-period> “Vietnamnews.vn (2017)”, “Purchasing power increases slightly”, accessed 06 August 2017, <http://vietnamnews.vn/economy/296255/purchasing-power-increases-slighty.> Tom, S 2014, 8 Benefits of Customer Relationship Management Software, viewed 19 July 2017, <http://www.insightsfromanalytics. com/blog/bid/374342/8-Benefits-of-Customer-Relationship-Management-Software> Nicholas, C 2014, Why Relationship Marketing Is The New Model for Luxury Brands, viewed 20 July 2017, <http://www.traackr. com/blog/relationship-marketing-new-model-luxury-brands> Ipsos Retail Performance 2016, The Importance of Customer Relationship Management in Retail, viewed 9 July 2017, <https:// www.ipsos-retailperformance.com/resources/blog/importance-customer-relationship-management-retail/> http://www.investopedia.com/terms/c/customer_relation_management.asp http://www.fibre2fashion.com/industry-article/6994/crm-in-apparel-retail https://www.businessoffashion.com/articles/basics/the-basics-part-8-marketing https://thefashiondarling.com/pricing-strategies-for-fashion-brands/ http://smallbusiness.chron.com/disadvantages-brand-identity-24599.html

T H E E N D.

n by nosbyn.

on i t c e l l o C CO MI NG S O O N

nosbyn.c om