Ivcf Fashion Case b4 PDF

Marketing Plan for the fashion brands
Lecturer: Ms Isabel Mut & Mr Alberga

|Word Count: 10,640|
May 7, 2009, Barcelona, Spain
Hiva Ghiri, Fredrik Gunnarsson and
Tom Jonk, Romy Hesp, Rachel Cladder,
Gabriella Norberg
Ivo Deumens and Harold Reitsma
Marketing Plan for Caorta and IGNOOR, and

the European Fashion Market
E XECUTIVE S UMMARY
The Dutch leather and handbag company Ignoor was founded by Noor Wentholt and Mike
Alberga. The brand stands for style and comfort, and it targets the less price-sensitive
businesswoman. The company has an office in the Red-Light district, Amsterdam, and sells
their products to 16 retail-stores in the Netherlands.
Ignoors promotion strategy is currently to receive free publicity through various channels.
However, they are also open for other suggestions regarding their general marketing
strategy. The unique products are differentiated from its competitors, with a price-range
from 200 to 600 Euros.
The company could increase focus on smaller, less expensive bags and accessories in order
to generate a larger customer base and a stronger brand. Furthermore it is recommended
to find more distribution channels and retailers within the Netherlands in order to boost
sales. Additionally, Ignoor is well set to successfully expand in the European market and
should focus on the UK, London.
The Spanish brand Caorta designs haute couture clothes for both the Colombian and
European market. The company is relatively new and has approximately 30 customers. The
designer and founder of the company, Camila Orozco, is Colombian and successfully
presented a collection during Bogota fashion week.
Caorta has had limited resources, and does not have an organized marketing strategy. The
products are sold through direct contact with the customers, as well as through
intermediaries. Although Caorta has a solid distribution method, the company needs to
improve its general brand awareness. Emphasize should be put on promotion, as Caorta
needs to increase the communication channels in order to get valuable information about
the customers.
Both Amsterdam and Barcelona are well known fashion cities in Europe. Amsterdam is
known for the Red Light district and Barcelona for its creative environment. The fashion
weeks in both cities are well established, visited by fashion-interested people from all over
the world. Together with government-initiatives, Amsterdam and Barcelona are developing
as fashion cities in the competitive European market.

T ABLE OF C ONTENTS
1.Terms of Reference........................................................................................................................................... 4
2. Procedures & Methodology.......................................................................................................................... 4
4. Introduction ....................................................................................................................................................... 6
4.1 IGNOOR, Amsterdam ................................................................................................................................ 6
4.2 Caorta, Barcelona....................................................................................................................................... 6
5. IGNOOR, Amsterdam....................................................................................................................................... 9
5.1 STP Stratergy............................................................................................................................................... 9
5.2 Marketing Mix .......................................................................................................................................... 10
5.3 SWOT Analysis of the IGNOOR bags ................................................................................................ 12
5.4 Competitive Analysis of European Cities....................................................................................... 13
5.5 Analysis of Market Competitors........................................................................................................ 17
5.6 Conclusion ................................................................................................................................................. 20
5.7 Recommendations.................................................................................................................................. 21
6. CAORTA, Barcelona ...................................................................................................................................... 28
6.1 STP Stratergy............................................................................................................................................ 28
6.2 Marketing Mix .......................................................................................................................................... 29
6.3 Competitive Analysis of European Cities....................................................................................... 32
6.4 Conclusion ................................................................................................................................................. 32
6.5 Recommendations.................................................................................................................................. 33
7. European Fashion Market Questions - Joint Assignment .............................................................. 37
8. Bibliography .................................................................................................................................................... 53
9. Appendices....................................................................................................................................................... 59

1.T ERMS OF R EFERENCE

The following paper contains two marketing plans for the brands IGNOOR and Caorta, and a
written work on the European fashion market.
The Marketing Plan for the leather brand IGNOOR was one of the four proposals that will be
presented to Ms Noor Wentholt and Mr Mike Alberga and in connection with the IVCF
challenge. This part of the report was compiled by Tom Jonk, Romy Hesp, Rachel Cladder, Ivo
Deumens and Harold Reitsma. The aim of this report is to analyze the marketing aspect of
the leather bag industry in Europe, as well as giving critiques and recommendations to the
brand IGNOOR.
Following the IGNOOR proposal a Marketing Plan for Caorta, which will be presented to Ms
Camilla Orozco and Isabel Mut, in connection with the IVCF challenge. This report was compiled
by Hiva Ghiri, Fredrik Gunnarsson and Gabriella Norberg. The aim of this report is to analyze the
marketing aspect of the haute couture industry in Europe, as well as giving critiques and
recommendations to the brand Caorta.
The written work on the European fashion market is a joint project produced by the Amsterdam
and Barcelona consultancy teams.
2. P ROCEDURES & M ETHODOLOGY

This report is based on both primary and secondary research, such as questionnaires, web
based research and academic books covering various aspects of Marketing. However, due to
the duality of the sector the external analysis does not only refer to clothing segment, but also
other types of textiles and products such as bed linen.
Please refer to the attached bibliography for further information.

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3. O VERVIEW OF THE S ECTOR

The Textile and Clothing industry in Europe distinguish itself by being labor intensive; in 2007
the total employment level was almost 2.5 million in 175000 organizations. Please refer to
Appendix 9.2.1 (TEXTILES and CLOTHING, 2008). The sector is of importance to the European
Union, particularly for Eastern Europe and countries in the Mediterranean zone. The majority of
the sector consists of small enterprises employing between 1 to 9 workers, representing 80
percent of the manufacturers, whilst only 7 percent of the companies employ a workforce of
250 or more. The average workforce consists of low educated workers; primarily women
(Trends and drivers of change, 2008). They also represents 8 percent of the total manufacturing
workforce, however they only signify 3.5 percent of value added to total assets created. It could
therefore be considered a competitive advantage to produce goods in Asia, where the labor
costs are significantly lower. The primary supplier of clothing goods to the EU is China, which
has increased its supply with 90 percent since 2004, and represents about 25 percent of the
total import to the EU. Please refer to Appendix 9.2.2 (External Trade, EU). The largest market
for clothing from the EU is Switzerland, closely followed by Russia. Please refer to Appendix
9.2.3 (European Foundation for the, 2009).
The major distributors in the industry primarily base their production operations in Asia, and
distribute their products from central warehouses in Europe due to geographical advantages.
The heute couture products represent another segment of the T/C industry, where clients are
willing to pay a premium for quality control, skilled workforce and brand. These garments are
produced in various European locations, where costs of production are higher. Trade patterns
play an important role in the sector, however they are diminishing over time as methods of
production are becoming increasing homogeneous (Trend and drivers of change, p.22, 2008).
Brand loyalty and trademarks, such as Made in Italy, are famous around the world. European
products often represent quality and imply endurance. A recent trend among young people is

significant increase in purchasing power, which may have in some cases had a negative impact
on the exclusivity of the brand e.g. Mulberry (Trend and drivers of change, p.16, 2008).
Governments have imposed various agreements and barriers to trade, limiting the amount of
clothes and textiles imported from competitive countries outside EU. Protection schemes such
as the Multi-Fiber Arrangement (MFA), which also is known as the Agreement on Textile and
Clothing (ATC), regulated the trade of textiles in the European Union between 1974 and 2004
(Phase-out of the Multi, 2003). The EU China textile agreement, which preceded the ATC was
negotiated to manage the escalation of imports from China until 2008 by imposing restrictions
on annual growth rates. However should these safeguard measures be removed the industry
might face increased competition from low wage countries (EU China textile agreement,
2005)
4. I NTRODUCTION
4.1 IGNOOR, A MSTERDAM
The Dutch brand and leather company IGNOOR, which designs handbags and accessories
was founded by Noor Wentholt and Mike Alberga. The design and label stands for style and
comfort, where the bags are specially shaped to the sophisticated woman body. Ignoor
loves to work with leather and make things fit for custom use. Your body is unique, an
Ignoor bag is original, and the combination is exceptional. These are the key functions of
the company and therefore their future elements. The brand IGNOOR has a its own
philosophy and history;
Movement through form and comfortable fit. Each Ignoor bag is
ergonomically designed towards the body, respecting the classical bag shape.
The female curves are an endless inspiration for the strong, feminine and
serene Ignoor line. Dutch designer Noor Wentholt continues a legacy of
leather design and craftsmanship descending from the Wentholt family,
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producing durable leather goods since 1766.Linked by the sign of infinity,
Ignoor joins heritage quality values with contemporary leather design
(IGNOOR, 2009).
Ms Wentholt is in charge of the design and creation process, while Mr Alberga handles the
sales and marketing for the company. The two work closely together in the realization of
the products. The sales and marketing that comes with Mr Alberga depending on Ms
Wentholt who has the responsibility of the product. On the other hand the marketing and
sales give the company much information about the market and demands that come
within. So Ms Wentholt has to adapt to these demands to make the whole thing work. The
two things cant depend on their own. Its a two way working system that has to be
combined.
Due to the red light districts reputation, the government has recently implemented a
scheme where they have made it possible for fashion companies to locate and run their
business in the area. IGNOOR has its own building there, where the office and gallery is
positioned. The combination of these two give a sense of the business, as the cultural
difference between an office and a (art) gallery crosses each other.
Strategy:
The leather gives the bag a tough image but the shape makes it more elegant. Two
characteristics that have been compared with a business woman between 30 and 50 years
old. Ignoor is willing to adapt to market segments, so its not only bags that they are willing
to make. Profit is something that give them opportunities for the future and more
important its necessary to exist in the future.
Marketing:
As earlier mentioned Mike is leading the marketing interests. One of his main functions is
visiting potential retailers. These retailers are existing shops were leather baggs may fit in
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the collection. For example clouting, lifestyle and off course bag stores. Ignoor dont have
an own store so they depend on the other stores who are willing to sell their product and
even as much as important, their brand. We are now going to take a closer look at the
marketing mix.
4.2 C AO RTA , B ARCELONA

The clothing brand Caorta was launched in Milan two years ago by Ms Camila Orozco, as
part of her graduation collection from the Marangoni Institute. After graduation Ms Orozco
returned to Colombia, where she successfully participated in a fashion contest in Bogota.
Through the competition she established a customer base in Colombia, since then she has
further expanded her customer base to the European market through a trade fair in
Barcelona. The companys customer base is small, and tailors to 20 individuals in Colombia
and 10 in Europe. Today the company employs two assistants in Colombia, who supports
the production of the clothing items (Orozco, Camila, 2009).
The company has two production lines; commercial clothing products and photography.
The clothing line consists of products such as blouses, coats, dresses, leggings, jackets and
skirts, and is viewed as the primary line. Every piece is unique and is produced in a limited
quantity of two to three items per city, however the majority of the production consists of
dresses; 40 percent. The exclusivity is accentuated by the quality fabrics from France and
Italy, as well as the manufacturing process where each piece is carefully handmade. The
fabrics used are priced at 9 35 per m2, and each garment is priced at production cost
with a 30% mark up. The sizes and quantities are always decided in advance for each
collection, the capacity is 15 orders per week and the time of delivery is approximately one
month. Caorta only produces one collection every year; however there is capacity for tailor
made pieces. The photography line is seen as a complement to the clothing segment of the
business (Orozco, C, 2009).

5. IGNOOR, A MSTERDAM
5.1 STP S TRATEGY
The segment in which IGNOOR is positioned in, targets sophisticated businesswoman, who
prefer quality and luxury goods. This is one point were Ignoor is focusing on. Ignoor is
willing to adapt to market segments, so its not only bags that they are willing to make.
Profit is something that gives them opportunities for the future and more important
itsnecessary to exist in the future.
Segments
Demographics
Age
Income
Occupation
Social class
Family status
Psychographics
Personality
Interest
Lifestyle
Values
Buying Behavior
Location
Frequently
Loyalty
IGNOOR
30-50
Middle, high
Lawyer, Bank employee, Business people
Middle, high
Single, married
Elegant, sophisticated
Fitness, Cooking, Running, Shopping, Tennis
Business woman
Liberal, independent
Bijenkorf, non specific stores
Average
Not loyal to the brand

5.2 M ARKETING M I X
PR OD UCT
Ignoors collection consists of nine different commercial products, e.g. shoulder bags
and lipstick cases. The products have common features and are all made of high
quality leather. These features are important characteristics of the product and
philosophy of IGNOOR;
1. Craftsmanship
2. Relationship to the female body
3. Quality & Luxury
4. Feminine, strong and serene
5. Dutch design.
Ignoor has one accessory, a lipstick case, which is less expensive and it sometimes
comes along with the bag as a gift. This is one of the best selling products if we look
at volume. It is an important fact that this accessory attracts attention.
BCG-Matrix Ignoor
High
Star
Question Mark
Carme
Market
Grow
Rate
Low
Cash cow
Dog
Lipstick case
High
Low
Relative Market Share
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IGNOORs cash cow is the lipstick cases, this because they have a high market share in
a slow growing industry. The lipstick cases generate cash in excess of the amount of
cash needed to maintain the business. The productions costs are not very high and
the profit on the cases is very high. They need to be "milked" continuously with as
little investment as possible.
The star of Ignoor is the Carme, it is a bag with a high market share in a fast-growing
industry. Our hope is that the clutch Carme will become the next cash cow. Sustaining
the business unit's market leadership may require extra cash, but this is worthwhile if
that's what it takes for the unit (Carme) to remain a leader. When growth slows, stars
become cash cows if they have been able to maintain their category leadership, or
they move from brief stardom to dogdom.
PLACE
IGNOOR has an office in Amsterdam from where it operates, as well as 16 different
retailers through out the Netherlands. At this point IGNOOR is approaching the
retailers to attract their attention and have more awareness. IGNOOR selects the
shops they want to sell in, but they are not in the financial position to refuse any
offers from retailers who want to sell their bag. Because of this situation IGNOOR
cannot be very precise in their image positioning on this point (Wentholt, N, Alberga,
M, 2009).
P R OM O T I ON
Ignoors budget for promotion is small due to the companys limited resources. There
is therefore no large promotion campaigns used at this stage. Mr. Alberga does the
promotion by demonstrating and informing about the products to potential retailers.
Their vision how they want to represent their product is clear but they are open for
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new market opportunities and willing to change, if this is more profitable for their
label. So what image do they want to promote? All the facets that have a link with
the bag or company but above all the unique selling point. That would be the body
shape of the bag. Ms Wentholt has to be creative when it comes to promotion due to
her weaknesses and threats, and take advantage of her strengths and opportunities,
these will appear later on.
P R IC E
The price of the product is a very important factor in their selling proposition.
IGNOOR products have a price-range from 200 to 600 euros. Premium pricing is used
and based on various factors, such as product, customer and place (IGNOOR, 2009).
One might consider the price to be too high, however an IGNOOR bag is much more
than just a functional bag. An IGNOOR bag is made of luxury leather and quality
materials that can justify the price tag. Price is very important in combination with
other marketing strategies.
5.3 SWOT A N ALYSIS
OF THE
IGNOOR
Strengths
The ergonomic concept of the
bag
The material, good quality
leather
Luxurious appearance
Opportunities
Extending the brand
Adding other products with
ergonomic influences
More high educated women
BAGS
Weakness
Price
Availability
Low financial position
Little brand awareness
Threats
Financial crisis
Saturated market
Much competitors
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5.4 C OMPETITIVE A NALYSIS
OF
E UROPEAN C ITIES
One of the goals of Ignoor is to be an international Haute Couture brand. Beside the
Netherlands and Spain, Ignoor also wants to export to a third country.
In order to select the right country a County Selection Model has been used.
C O U N T RY S E LE C T I ON
Because of the organizational structure of Ignoor we only make an analysis of the European
countries. The information of the following countries is seen in the figure below.
Germany
Denmark
Lithuania
France
Ireland
Azerbaijan
United Kingdom
Finland
Latvia
Italy
Portugal
Cyprus
Spain
Romania
Bulgaria
Estonia
Russia
Czech Republic
Iceland
Netherlands
Ukraine
Bosnia and Herzegovina
Turkey
Hungary
Albania
Sweden
Slovakia
Georgia
Belgium
Greece
Croatia
Armenia
Switzerland
Luxembourg
Macedonia
Poland
Slovenia
Malta
Norway
Belarus
Moldova
Austria
Serbia
Montenegro
1) Pre-Filter
Cross Domestic Product
Population Density
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Remaining countries:
Germany
Denmark
Sweden
France
Ireland
Belgium
United Kingdom
Finland
Switzerland
Italy
Portugal
Montenegro
Spain
Cyprus
Norway
Iceland
Czech Republic
Austria
Netherlands
Luxembourg
Greece
Turkey
Slovenia
2) First-Filter
Economic growth
National income
Purchasing Power
Remaining countries
Germany
Luxembourg
France
Norway
United Kingdom
Sweden
Italy
Belgium
Spain
Switzerland
Denmark
Austria
3) Final-filter
Expenditures in clothing and leather industry
Clothing prices
Number of highly educated women
Vision Ignoor
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Remaining countries:
United Kingdom, Italy, Austria and Belgium
Based on the Vendor rating analysis, the country Austria is the most suitable option for an
expansion. However if we consider the location of Ignoor, the name, the philosophy of the
brand and its products, Austria is not the best option. This because Austria is not been
recognized as a real fashion country, and is not ready for a new label like Ignoor.
We recommend the UK instead of Austria because London is one of the largest fashion cities in
the world, and it is known for its many innovators and trendsetters. Ignoors unique selling
point is the products innovative designs and shapes, which could appeal to the consumers in
London. That is why this is a perfect combination.
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DESTEP
OF THE
D UT C H F AS H I ON M A R KE T
Demographically
The number of visitors to
the expensive shopping
street the Pc Hoofdstraat is
decreased with 32 percent.
Ecologically
An upcoming trend in Haute Couture
branch is making products from
ecological materials.
Technology
The Internet selling of
clothing, shoes and
accessories are increasing
rapidly.
Socially
Trend- and fashion sensibility is
growing, fashion cycles are getting
shorter and the share of fast fashion
is growing.
The consumer is getting more brand
and quality sensitive.
Economically
In November 2008 the turnover
of the leather industry of the
Netherlands was decreased
with twenty percent.
The prices of the raw materials
of the leather industry were
increased with 2 percent in
comparison with November
2007. Because of these
developments the prices of the
products were also increased
with two percent.
From calculations of the NIBUD
it is showing that in 2009 de
prices will hardly increase and
that the net income will rise.
Also everybodys purchasing
power will increase with 1 to 4
percent.
(NIBUD, 2009; Clean Chic, 2006; CBS, 2009; Rabobank, 2009.)

DESTEP
OF THE
Demographically
There are more women
than men in Spain at
the moment, which is
an interesting aspect
for the fashion trade
industry
Men 7.144.406
Women: 7.787.800
S P AN IS H F A S H I O N M A R K ET
Socially
Barcelona has every season one of
the most famous fashion trade fairs,
Bread and Butter.
Spanish people are very sensitive
for the style of famous people
Ecologically
Technologically
Most of the
Spain has a large number of
Spanish companies
companies operating in the leather
are not yet familiar
goods sector who are using different
with ecologically
kinds of technology. Many have made
friendly materials.
a firm commitment to international
markets, including Lupo, Puntotres,
Fun & Basic, Myriam Gallego, Olimpo
and El Caballo, not forgetting the
luxury Loewe brand, which is also of
Spanish origin. All using the most
innovative technology, made their
name through first-rate quality and
design.
Economically
Spanish leather goods have an

international reputation for
quality raw materials and
excellent finish. The Spanish
industry comprises some 1,752
companies, many of which are
tiny craft businesses. More than
83% have fewer than 10
employees and generate direct
jobs for 15,929 people.
In 2008, production rose to
1,883 bn, up almost 3.9% on the
previous year.
Production distribution by region
confirms Andalusias leadership in
terms of numbers of businesses in
this field, with a share of 29%.
These are concentrated in
locations like Ubrique in Cdiz. It
is followed by the Valencian
Community with 26.7%, Catalonia
with 18% and finally Madrid, with
13.2%.
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DESTEP
OF THE
U N IT E D K IN G D OM F A S H IO N M A R KE T
Demographically
In 2006 57% of al the
students in England
where woman.
Economically
The expenditure on clothing was in
2005 5.3 % over the total
expenditures.
Net income of the residents of the UK
where the highest of Europe
Ecologically
More and more
designers are using
ecological material in
their products.
Technologically
Also in the UK the selling of clothing
and accessories with the Internet is
growing
5.5 A NALYSI S
OF
Socially
The capital of England is
London and this is one of
fashion cities of the world.
A lot of different fashion
communities.
Many open-minded
consumers
Many innovators and
trendsetter.
London fashion Week
M ARKET C O MPETITORS
The group has analyzed the competitors of the potential markets to give a better view on
the activities in the market.
N E T HE RL A N D S
Ignoor makes body shaped bags. According to Ms Wentholt there are o competitors
at this point. They are very unique in their concept. If we look to other Dutch
designer who makes qualitative good, leather bags then there are a few competitors.
Two of them are Zomoy and Philine.
Zomoy is started to make bags that actually wear our selves. The bag has to have it
all; space for daily necessaries including PDAs and laptops in various sizes, held safely
in a very stylish disguise.
Based in Amsterdam, Zomoy stands for fair trade and does not deal with any vendors
practicing child labor or any other kind of (human) exploitation. The animals that
gave us their beautiful skin are raised to provide the people of their country with
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food and not solely for leather purposes. Each Zomoy is made with care, passion and
high quality leather and fabrics (Zomoy, 2009).
Zomoy sells their products in the Netherlands, Germany, United Kingdom and
Belgium. The products are workbags especially laptop bags. The prices of the laptop
bags vary from 120 till 330. The PDA bag is 49.
Strengths:
Bags that have it all; for daily use
including PDAs and laptops
They stand for fair trade
Zomoy is based in four different
countries
Weakness:
They are very unknown by the larger
public
Zomoy has style that not everybody
likes
Philine is a Dutch designer. She makes innovative designs and creative quality for
those with individual taste. Philine is inspired by the natural world and driven to
create a style, which defines love of personal expression. Philine designs for those
that shine by what sets them apart from others. Smart, fun cool, theyre the ones
with a defined sense of style and ultimately those who find joy in things unique and
have passion for their own individuality. Philine translates her fascination with that
what isnt into tangible objects: fashion statement meets object dart.
Philine makes handbags en clutches. Philine is located in seven different shops in the
Netherlands and three shops in France. She was also a participant of the trade
exhibition de Modefabriek in Amsterdam (Philine Online, 2009).
Strengths:
Focus at customers with their own
individuality
Attention from press
Weakness:
Site is not that impressive
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S PA IN
Pepe Alba European Design, Inc. is a premium leather design company based in
Spain. They have been creating high quality purses, wallets, handbags, and other
accessories for over 5 years. They take pride in their workmanship and it is important
to them that their products are top of the line!
The philosophy from Pepe Alba is:
The single most important idea, which we embrace, is "QUALITY and PRIDE in one's
work!" This means that we stand behind all of our purses and products 100%,
because we know that they are made with premium materials by some of the most
talented and experienced hands in all of Europe. (Pepe Alba, 2009)

Strengths:
Online shopping opportunities
Different products like; wallets, belts, purses, handbags
Lupo is a brand that exists of leather bags. To maintain their high quality standards,
every stage of the manufacturing process employs state-of-the-art technology and
undergoes exhaustive controls. Lupo use genuine leather therefore the texture of the
pieces that make up your article may vary slightly. This characteristic feature makes
your Lupo item unique and unrepeatable.
They not only make handbags they also make belts and key chains of leather. Lupo
has several shops in Spain. Lupo is located in cities like Granada, Madrid, Barcelona
and Valencia. Lupo has also shop-in-shop in Spain, Belgium and Portugal. Lupo has
also one shop in Tokyo. (Lupo, 2009)
Strengths:
- Located in many shops in Spain
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U N IT E D K I N G D O M
Alison van der Lande appreciates colors and luxurious leathers and combines this
passion to produce beautifully crafted bags for all occasions including clutches,
handbags, weekend bags and hand luggage, tennis bags and so much more. The
leather is Italian and all the bags are handcrafted in Italy. Alison van der Lande was a
member of the London Fashion Week. The collection from Alison van der Lande is
located in London, New York, Denmark and Egypt. Alison van der Lande was also a
member of the trade show in London and the Natural History Museum.
Because Alison van der Lande has also a tennis bag and a golf bag. You can see on
these two items that the target group of Alison van der Lande is similar as Ignoor.
Because the women who buy Ignoor are higher educated and will also play tennis or
golf (Alison van der Lande, 2009).
5.6 C ONCLUSION
The smaller bag designers have their own philosophy and their unique selling point. Those
smaller designers are closely related with their brand, just as Ignoor. It is very clear that
there is a heavy competition between the small designers. Ignoor has to stand out from the
small designers. Therefore Ignoor has to work on their collection, promotion and selling
points.
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5.7 R ECOMMENDATIONS
After all of our research we now will give recommendations to Ignoor, how they can gain
more brand awareness in the future. We will make the recommendations through a
desired marketing mix for Ignoor. The marketing mix is based on the information Ms.
Wentholt and Mr. Alberga gave us during the meeting at their office. We also can make a
few conclusions from our field research. We made a survey with the most important issues
and contacted Mr. Alberga if it was possible to use a bag for our survey, so we could give a
better image to the people we questioned. Mr. Alberga agreed and gave us the Cleone and
Carme bag to promote. Now we will show the most important results.
PR OD UCT
We can conclude from our field research that the bag Iris is the most popular one. On
the second place the Doris and the third place the Danae. The Luna and the Freyja
were the most unpopular bags through our rating. The main argument of the people
we questioned was that a bag has to be practical. If we look at our top three of the
bags, we see that they are easy to carry because they all have a long handle that you
can use as a shoulder bag. This is an aspect where Ignoor should focus on with her
future bags. An other conclusion from the survey, was that the people liked the
Carme bag very much because of the size of the bag. That is why we also suggest to
Ignoor to make more smaller items, because they are less expensive then a bag and
popular within the target group. This will be also with less risk for the retailers who
want to sell Ignoor products.
We also asked the respondents what kind of other leather items they would like to
see next to a bag. We advice Ignoor to add the following accessories: an agenda, belt
and a purse. An other advice to Ignoor concerning the product is to stick with the
concept of the body shaped bag. Because the shape of the bags was a popular
21

concept for a lot of the respondents.
NEW
B RA ND
After the interview with Ms. Wentholt and Mr. Alberga they told that
they were thinking of starting a new brand. We advice Ignoor not to
launch a second brand because we think that they should focus on the
existing brand first. Ignoor has a good quality product and they have to
enter the market with the collection they already have. If Ignoor is doing
well with its first collection they can consider starting a second brand.
With the launch of a new brand there are various risks associated. Such
as:
o Developing an understanding of the market the new product is
intended to address. With questions like: Who will buy the
product, what is the profile of these people, what appeals to this
people, etc. Answering these questions will take a lot of time and
money.
o Extensions can weaken a brand and it can make confusions about
what the brand means.
o Extra costs, which Ignoor can not miss at the moment.
o The more things you try to become and the more you lose focus,
the more difficult it is to differentiate your product.
o The current brand Ignoor will not help the possible new product.
22

P R IC E
The people that we interviewed found it difficult to see the difference between an
Ignoor bag (Cleone) and a regular leather bag from a less expensive brand such as
Mexx or Esprit. Due to this, the people estimate the value much lower. The people
want to spend between 50 and 200 for a bag. The brand Ignoor is not well known
among the people so even if they want to spend 400 they wouldnt spend it on an
Ignoor bag. This is due to the brand awareness; there is no reference, feeling or
experience with Ignoor.
Our conclusion is that Ignoor has to sell smaller items for a lower price. The consumer
buys these items easier. The more accessories Ignoor sells, they get a better brand
awareness. Because of these items the consumers will experience the brand, the
quality and the exclusivity. Finally the consumer is convinced to pay the price for an
Ignoor bag.
PLACE
We believe that the Ignoor collection will sell better if the collection is presented in a
well-known department store like the Bijenkorf. Its very difficult to get in the
collection of the department stores. But we hope after the implementation of the
above the demand will grow and the position is stronger so they have a better
chance. This should be one of the sales targets.
The website of Ignoor is still in development, they are adding a web shop so
consumers can buy the bags online. We advice Ignoor to show their collection in 3D,
so you can see the curves of the bags much better and you will understand their
concept.
23

At this point the Ignoor collection is presented in 16 stores in the Netherlands. It is
necessary to increase the number of stores. We think this is made possible by the
expansion of the collection
P R OM O T I ON
Because the budget for promotion is very low we want to promote the collection by
free publicity. We have found five solutions to enlarge the brand awareness.
RTL Boulevard
RTL Boulevard is a Dutch tv program about lifestyle, fashion, daily news about
everything whats going on in Holland. One of the members of the tv show is Fiona
Hering, she is a famous fashion journalist. We want to give her a bag so she can talk
about it in de show. She can also tell the philosophy of the bags from Ignoor. Daily
the show is watched by 700.000 people. To realize this, Ms Wenholt must get in
contact with the editors of RTL Boulevard.
She can send an email to
rtlboulevard@rtl.nl or she must contact Jaap Paulsen because he is the contact

person of the show. His telephone number is 035-671 88 79 and his email-address is
jaap.paulsen@rtl.nl. Through the completion of this process it is possible for Ignoor
to make it on the show, and give more awareness to the brand.
B U DG E T :
The cost of the promotion by RTL Boulevard will be the bag that is send as
a gift to the show. The price depends on the bag that will be chosen. It
will be between the 200 and 400. The bag will be the only cost for
Ignoor, its an also an option that Ignoor sends the Carme as a second
24

product, because thats a different kind of bag compared to the other
models. The costs of the RTL boulevard promotion will eventually not
exceed 1000.
Press releases to fashion magazines

Ignoor has to be more in the publicity thats why we suggest that Ignoor or the PR
agency of Ignoor makes a press release for the fashion magazines and the other
magazines that the target group will read, like Linda. In the press releases Ignoor
has to make clear what their philosophy is, what so special is about the bags, where
they are available and why the customer should buy their bag.
B U DG E T :
The press releases will be made by the PR-agency from Ignoor. This PRagency is the only cost for this promotion, and will be around 1000.
Bag parties
The bag parties has to be given by the target group who are already interested by the
Ignoor bag or already have a bag from Ignoor. By this way of promotion the target
group should be enthusiastic already so that the word-of-mouth advertising is
positive and that the social groups of the target group are be informed.
Flyers
If the customer buys an Ignoor bag, there is a bag included to protect the bag. Several
promotion cards like a flyer or a company information card, what Ignoor already have
in use, will be included with each sell. So the customer can see the rest of the
25

collection and get in contact for a bag party. When Ignoor promotes itself to the
client if they already bought a bag then they are in a more enthusiastic mood,
because they are already familiar with the product. When they are at home, they can
see the flyer with the collection and the company information card. In this way there
could be a creation of word-of-mouth advertising. The customer will be encouraged
to buy a bag again from Ignoor. The flyers will be given to each retailer of Ignoor
bags, and with each sell of an Ignoor bag the retailer will put the flyer in the
protection bag.
B U DG E T :
The costs of bag parties are very low. The only thing that have to be
taken into account is the cost of a car, as a transport to the parties.
The printing of the flyers and the visit cards are the other cost.
500 company information cards:
150
500 flyers:
500
The total cost for the flyers and the company information cards will be
around 650.
This amount can vary. It is possible that there will be more or less than
500 flyers and visit cards be ordered. This depends on what Ms. Wentholt
and Mr. Alberga wants.
The distribution of the flyers to the retailers is also a cost. We think that it
is handy that Mr. Alberga drop them by the retailer. At this way he can
tell something more about the idea and he maintains the relationship
with the retailer. The cost that are involved are the car cost.
26

Famous Dutch person

We want to promote the Ignoor bag by given it to a famous Dutch person. Which
famous person it will become should be decided together with Ms. Wentholt and Mr.
Alberga.
T O T AL
B U D GE T :
The total budget for the promotion will be around 2650.
Long term:
If the accessories are doing well and the money supply is increasing, Ignoor should be
using this money to promote the bag collection.
27

6. CAORTA, B ARCELONA
6.1 STP S TRATEGY
S E GM E NT AT I O N AN D T A R GE T IN G
Caortas target market is the fashion, culture -interested segment. Due to the price range
Caorta should focus on the consumers who are not very price sensitive (Questionnaire,
2009). Since the targeted group enjoys fashion, they purchase clothing items for a larger
sum than the average consumer. The consumers in this segment are not normally
interested in buying clothes in major retailers. It is more common for these types of buyers
to purchase their clothing items in designer stores, boutiques and haute couture shops
(Questionnaire, 2009).
The targeted consumer in this segment could be illustrated by this table:

Segments
Caorta
Demographics
Age
20-40
Income
Middle, high
Occupation
Middle, high paid jobs-
Social class
Middle class
Family status
Single, married
Psychographics
Personality
Creative, liberal open minded, pro-active,

energetic, elegant
Interest
Art, modern art, culture, food, wine, fashion

interested
Lifestyle
Travelling- culture awareness
Values
Liberal, independent
28

Buyer Behavior
Location
Grcia, - in house (studio, art galleries)
Frequently
Once a month
Loyalty
Some sense of brand loyalty, brand loyal
Caorta uses concentrated marketing and it offers one single product line that appeal to a
certain target group only. There is a certain amount of risk involved for the company, since
it is concentrating on having a strong position in only one segment of the market.
P OS IT I ON I N G
Caorta is positioned in the less price sensitive/Exclusive part on the fashion market. This
represents designer clothes, haute couture, and high quality designs with premium pricing.
Caorta is not trying to attract customers from other parts of the market, such as people
from the more price-sensitive segment or those who value functionality rather than image.
Caorta does however not position itself next to the highest set of luxury brands, such as
Gucci, Prada, Chloe etc.
6.2 M ARKETING M I X
P R O D U CT
Caorta sells a specialty product, which is of interest to a narrow segment in the fashion
market. The product line is fairly slim, but with a certain depth.
Caortas core product satisfies the customer needs of decoration, self-actualization,
sensuality, and expression of personal style/personality and of being unique. The needs of
protection, ease of care, versatility, are already fulfilled by other brands at a cheaper price.
29

The actual products produced are jackets, blouses, leggings, dresses, skirts and coats,
which form one product line. All pieces are designed and handmade using high quality
fabrics from France and Italy, and there are only 2-3 units of each piece created for each
city. As mentioned before one collection is made each year and it reflects the brand and its
philosophy. A second product line could be identified as tailor made clothing, which so far
consists of one wedding dress. Caorta has to some extent also been able to focus on its
augmented product by offering its customers a possibility to directly contact the designer,
Camila Orozco, through e.g. telephone contact (Orozco, Camila, 2009).
Branding
Caorta as a brand by its own could be considered relatively strong, as its
customers have shown a demand for the products by returning to the designer
(Orozco, Camila, 2009). However the brand itself at this moment has a limited
impact on the buyer behavior, since the customer base and size of the brand is
still small (Questionnaire, 2009). Although in the case of tailor made wedding
dress, the brand and design was of a high importance. The same brand is used
for both the clothing line and also for the complementary photographing.
P L AC E
Caorta sells its products directly to its customers, as well as using intermediaries such as Art
Galleries. Caorta does not have its own store and is a non-store retailing activity, apart
from the exception of the multi brand store (Orozco, Camila, 2009).
The direct contact with Caorta has mainly been established through various events and
trade fairs, where customers have been able to receive contact information so that they
can place an order later on. In Barcelona the products were also exposed and sold in an Art
Gallery in Grcia (Orozco, Camila, 2009).
30

P R O M OT I ON
Caorta has so far not been emphasizing any particular marketing method/strategy to
further reach new customers, and the budged so far has been around 500 Euros. However
the designer has as mentioned before been able to successfully use personal selling
through different events e.g. the fashion show in Bogota and trade fair in Barcelona, as well
as using social forum such as Facebook.
P R I CE
Caortas products are in a wide price range, where dresses cost 180 400 Euros, skirts 80 200 Euros, coats 300 - 480 Euros, jackets 250 - 320 Euros, blouses 80 - 120 Euros and
leggings 25 - 35 Euros. There is a mark-up charge of 30% to the production cost (Orozco, C,
2009). The following table illustrates the profitability of the business, based on Caortas
own estimations on price range and the distribution of the items:
Supplement charge
Number of items
Item
Leggings
Skirt
Dresses
Coats
Jackets
Blouses
Sweaters
Total
Price
range
25-35
80-200
180400
300480
250320
80120
???
30%
30
Avg.
Price Profit/item
30
7
140
32
% of total
sales
2%
18%
Pieces
0,6
5,4
290
67
40%
12
390
90
10%
Sales
18
756
348
0
117
0
Profit
4
174
285
66
10%
855
197
100
150
23
35
10%
10%
3
3
300
450
7029
69
104
1622
803
270
31

6.3 C OMPETITIVE A NALYSIS
OF
E UROPEAN C ITIES
Barcelona, London, Paris and Amsterdam are all in their way interesting markets for Caorta
to enter. The cultural sense and the liberal fashion attitude in these cities represent various
segments of the fashion market; Haute couture, ready to wear and Mass market (Types of
fashion, 2008). There are also many already established cultural environments such as:
museums, modern contemporary art exhibitions, music events, and culinary food in the
cities.
Indicators such as Gross national product per capita, economic growth, consumer behavior,
distribution of income and unemployment could not be valid points to take into
consideration in Caortas case because of the relative small difference between the cities.
The important aspect for the expansion of Caorta is that the cities provide a forum for
artistic performances and thereby interest and demand. However indicators such as Gross
national product per capita, economic growth, consumer behavior, distribution of income
and unemployment are not valid points to take into consideration in Caortas case, since
Caorta is not attracting the mass market. Caorta attracts as mentioned before a narrow
and specified segment in the market (please see section Segment, targeting and
positioning). Based on this assumption, Caorta should focus on identifying the target
groups and forums in the various cities, e.g. art galleries and fashion events.
6.4 C ONCLUSION
The European fashion industry is competitive and many European brands are well known
around the world. The fashion market consists mostly of small companies and some larger
fashion houses. Caorta and its designer Camila managed to successfully enter the market
two years ago. Although Caorta has established a customer base in Europe, it still requires
a more distinct marketing strategy. Due to the companys limited resources, aspects such
as promotions have partially been left out. There is also still room for improvement on the
32

strategies for price and product. However the current distribution approach is sufficient,
since it is cost efficient and reaches its customers.
6.5 R ECOMMENDATIONS
P R O D U CT
Caorta could focus more on the actual aspects of the product. For the actual part Caorta
should offer the clients an improved shopping experience. The experience should revolve
around a stronger personal relationship with the products. To reach this objective we
suggest a letter, which describes the idea with the collection - the design, fabric, vision etc.
The designers philosophy should also come across in the letter, together with information
about the brand. Giving each piece a stronger identity will encourage brand loyalty.
Another aspect is the packaging, where we suggest a consistent, identifiable and personal
style to wrapping of the products. This will also increase the shopping experience for the
customers.
Caorta has the capacity to add another product, by introducing a tailor made line. This line
should however not be compared with the main product line, since that might cause
confusion for the customers and decrease brand loyalty. However it is vital that the new
line goes under the brand Caorta, as the promotion becomes increasingly cost effective.
The benefits of this developed line are less business risk and another source of income.
P R O M OT I ON
Due to the lack of monetary resources only 500 Euros have been allocated to the marketing
strategies. Caorta is in the introduction phase and needs cost efficient ways to promote the
brand. We believe that a blog and website (forum), which represents the brand, should be
created, in order to reach and inform existing and potential buyers. An advantage of the
33

blog is that it easily reaches its target group and it is a good way of networking with other
people in the business. Other ways of communicating with the broader public is through
uploading the already existing clip on YouTube.
Facebook is a networking tool already used by the company, and we suggest a more
interactive networking site; Asmallworld. Asmallworld differs itself from Facebook by
facilitating the creation of new contacts with various business people. There is for example
a well-established section for only fashion and designers.
A critical recommendation to Caorta is to create a CRM system, which makes it easier for
the company to keep track of the activity of its customers.
This will increase the
relationship with the customers and it will provide Caorta with sufficient information.
Thereby Caorta will be able to use more efficient promotion strategies - promoting the
right product to the right people at the right place. Caorta needs to know its customers
more in detail compared to the current situation.
P R I CE
Caorta should further develop a price strategy to increase its revenues, and therefore the
following steps are suggested:
Caortas current price strategy has its limitations, since the quantity of the produced goods
and the profits are biased. The revenues from leggings contribute with only 54 Euro, while
the dresses contribute with more than 10.000 Euro. It could be more suitable with a price
strategy that relates to the actual demand. We suggest that for example leggings are to be
promoted with a specialty-reduced price to lure the customers into buying other products
such as dresses. Furthermore we suggest that the dresses could be sold with an increased
margin, which also could increase the exclusivity through the premium pricing.
34

If Caorta wants to survive on its own finances, with the already implemented strategies the
quantity produced must increase from 30 to 300 units. This would raise profits and give
Camila an income around the average Spanish salary. At that point it must be decided
whether it is reasonable to restrict the production to 2-3 pieces per item for each city.
The following table illustrates the profitability of the business, based on adjustments in the
quantity produced:
Supplement charge
Number of items
60%
300
Price Avg.
Item
range Price
37
Leggings
?
Skirt
?
172
357
Dresses
?
Coats
?
480
Jackets
?
351
123
Blouses
?
Sweaters
?
185
Total
% of
total
Profit/item sales
14
2%
65
18%
134
40%
180
10%
132
10%
46
10%
69
10%
Pieces
6
54
120
30
30
30
30
Sales
222
9305
42831
14400
10523
3692
5538
86511
Profit
83
3489
16062
5400
3946
1385
2077
32442
Seasonal discount or promotional discount could be used in order to sell out-dated pieces.
Due the current financial crises and the change in peoples buying habits Caorta should
adapt its prices. However in order to protect the brand, the pricing strategy should not
involve discount on up-to-date pieces.
In the long term it will be beneficial for the company to increase its supplement charge to a
figure around 60%, resulting in an increased profit and a stronger position for the brand/
image.
35

B U D GE TI NG B A S E D O N R E C OM M E N DA T I ON S
The mentioned letter that should be given to the customer at every purchase should not
cost more than 0.70 /letter (paper and ink included). The packaging should have a price
around 1, since the packaging does not have to be expensive, it should only have a
personal touch.
Furthermore the necessary webpage could cost from 200- 5000
depending on the supplier and the quality of the product. Caorta needs a simple, easy
webpage that also includes the various elements and philosophy of the brand. Therefore
the price could be around 300-400 for the actual webpage and an added annual expense
around 50 . The blog, Facebook and Asmallworld do not have any direct expenses, but Ms
Orozco will have to put labor hours in order to maintain the different networks. The CRM
system will also demand labor hours, approximately 15 minutes per customer and year.
36

7. E UROPEAN F ASHION M ARKET Q UESTIONS

7.1 W HAT ARE THE MAIN CHARACTERISTICS OF THE
MOMEN T ( MARKET DEVELOPMENT AND TRENDS )?
CREATIVE INDU STRY AT THIS
The Global Financial Crisis

The financial crisis has negatively affected he fashion industry through the growing concern
regarding consumer confidence and spending. Several major retailers have faced severe
drops in earnings, and some have been forced to restrict expansion ambitions (Prada lays
foundations, 2009). When examining the drop in S&P Retail Index compared to the drop in
Dow Jones Industrial average, it can be identified that the retail index did not plunge to the
same levels as the industrial average. (Financial crisis could be fashion, 2008). It is likely
that a consolidation in an industry that is still fragmented will occur, as a market recovery is
doubtful. As changes in consumer buyer behavior has changed, resulting in a fall in
demand, the well-established brands are still safe, however the weaker ones may go under
if the market pressure continues (Luxury groups eye retail, 2009). Some providers are
reducing their work force and fighting to service debt taken on during the years of market
expansion (Prada lays foundation, 2009). One of the consequences of the decrease in
consumer spending has been that many retailers have put up discount prices in order to
increase sales. Many other smaller fashion entrepreneurs have also been affected by the
decreased demand, and have therefore not been able to show their collections in different
locations (Orozco, C, 2009).
Fair Trade and Organic fabrics

Developments such as Organic fabrics and Fair Trade products are currently trends in the
fashion industry, as some people are demanding ethically produced garments. The idea of
37

Fair Trade goods is to increase exports from developing countries and provide the workers
the standards for international labor (reasonable work hours, no child labor, fair living
wage etc), environmentalism and social policy in areas related to production of goods.
Many designers and retail stores, such as Stella McCartney and ZARA have also increased
the usage of Organic fabrics in their lines and collections (A Stella Turnout, 2008). As
environmental concerns are increasingly affecting consumer choices, the organic cotton
industry is also witnessing an increased demand in Europe (Europe's Fashionistas Go
Organic, 2007).
High street retailers collaborating with high-end designer

There has been a trend going on for the last couple of years where retails stores such as
Mango, Top Shop, H&M have been using high fashion designers such as Stella McCartney,
Victor & Rolf, Karl Lagerfeld, and celebrities such as Penelope Cruz and Kate Moss in order
to attract more customers (High end designers in low, 2009). The most recent collaboration
was the British high fashion designer Matthew Williamson and the Swedish retail store
H&M (Matthew Williamson brings, 2009.
38

7.2 W HICH ARE TH E ECONOMIC OPPORTUNITIES

A MSTERDAM AND B ARCELONA IN THE NEXT FI VE
FOR THE FASHION INDUSTRY IN

YEARS ?
There are many economic opportunities in the two mentioned fashion markets; one way
that existing brands can increase awareness is through re-branding their labels, which
basically means re-launching an active product. The lingerie brand Hunkemoller is planning
to change the name of the brand to Bodique. The idea is to target a wide range of people
and to position themselves in the European market by using tactical re-branding. The
warehouse V&D re-organized their entire collection, in order to become more competitive
in the fashion industry.
E-commerce is also becoming more important in the fashion business, since it enables
consumers to have easy access to different labels and shops. An example is the website,
www.asos.com from the UK, which has been successful in online selling. The extension of
the online fashion stores could be an economic opportunity for Amsterdam and Barcelona.
Although the increased usage of Internet has influenced the fashion business positively, it
has also contributed negatively to many brands. The reason is that many of the brands
intangible elements such as the design of their retail stores have diminished.
39

7.3 W HICH CITI ES ARE COMPETITO RS FOR B ARCELONA AN D A MSTERDAM IN THE

FASHIO N - INDUSTRY ? H OW STRONG IS THI S COMPETI TION ? W H AT ARE THEIR
MAIN STRENG THS AND WEAKN ESSES ?
The Global Language Monitor, who monitors the media for information regarding the
fashion industry, annually compiles a list of the top 25 fashion cities in the world. In this
ranking New York is ranked as the most prominent city in the fashion world, followed by
Rome and Paris. Barcelona is ranked as No. 13, whilst Amsterdam is not included (New York
Tops List, 2007). The fashion industry in Paris has a rich history, and is famous for its
exclusive fashion market. Some of the worlds renowned silk is produced in France, and is
used together with carded wool to create complex designs characterized by clarity of
silhouettes (Jones, S. J, p. 35, 2005).
France has a well-established fabric industry that works in perfect harmony with its
fashion designers (Fashion capitals of the, 2009)
As will be mentioned later in this assignment, one of the efficient ways of marketing your
city as a fashion capital is by hosting a fashion week. This is an industry event, where
designers are able to showcase their collects and for buyers and press to examine the latest
trends that wont hit the stores for several months. The most well established fashion
weeks are hosted in Milan, Paris, London and New York City. Whilst Milan mainly focuses
on the big brands, New York is the stage for labels designed by socialites for socialites, Paris
focuses primarily on avant-garde and ladylike chic, and London is the source of new fashion
talent (The Big Question, 2007).
Isolated from the fashion industry in France during the World Wars, New York had to
develop their own identity and products.
The new strategy was based on national
resources and fabric development. Previously mainly derived from French fashion, New
York was left by its own during the world wars. Rich of homegrown cotton and prominent
in fabric development, they pursued their own strategy. The style differs from the exclusive
40

European fashion, since New York is mainly famous for its sportswear and denim (Jones, S.
J, p. 47, 2005).
One of the largest exporters of textiles and clothing in the world is Milan, Italy.
Distinguished by excellent craftsmanship, its famous for labels like Armani, Prada and
Versace. Apart from the suits, the strengths of Italian fashion industry are in general
footwear and knitwear. As Italians in general spend a lot of money on clothing, there exist
few street style brands (Jones, S. J, p. 38, 2005).
All of the three mentioned cities are heavily backed-up by government councils that
contribute with resources in order to hold fashion weeks and promote designers. London
does also enjoy government support but not to the same extent, and they do face
problems with brain drain to other prominent fashion cities. Another issue is their poor
network of craftspeople. There are however, many successful brands such as Burberry,
Jaeger, Paul Smith and Stella McCartney representing London fashion. Another style
related to London is anarchic and eccentric fashion where many designers can find
inspiration (Jones, S. J, p. 40, 2005).
41

7.4 W HICH MUNI CIPAL AN D PRIVATE SECTOR COLLECTIVE INITIATIVES EXIST IN

A MSTERDAM AND B ARCELONA TO STIMULATE THE FASHION INDUSTRY ? W H AT
ARE THE MAIN CHARACTERISTICS , STREN GTH S AND WEAKNESSES OF THESE
INITI ATI VES ?
Red Light Fashion, Amsterdam
High-level fashion design located in the Red Light district of Amsterdam gives the top Dutch
fashion talent the opportunity to display their work at a location that attracts international
attention for its provocative business. From Australia to the United States and Japan,
articles appeared all over the world about this intriguing mix in the historic area of
Amsterdam; one is able to admire Dutch couture next to the well-known girls of pleasure.
The list of high-level fashion designers varies from couture talent Jan Taminiau, shoedesigner Roswitha van Rijn to underground street wear designer Bas Kosters. Red Light
Fashion Amsterdam embroiders on Turning Talent Into Business, in which 16 Dutch fashion
talents spend two years being mentored towards professional entrepreneurship. The
designers get business advice and take part in workshops together covering aspects such as
production, marketing, financial and juridical management. By working, living, exposing
and inspiring each other the designers contribute towards putting Amsterdam on the
international fashion map. IGNOOR is also a part of this project and it helped IGNOOR in
the early stages to create more brand awareness.
Strengths:
The Red Light district has become an international hotspot for design tourists.
Red Light Fashion Amsterdam gives an impression of the diversity and the strength
of the Dutch fashion identity.
Weakness:
The Red Light district will become a temporary fashion hotspot. The temporary
aspect of this project makes it less desirable to participate as a designer.
42

World Fashion Centre, Amsterdam
The meeting point of fashion: The World Fashion Center in Amsterdam is the largest
fashion trade centre in the world, with more than 400 showrooms and many national and
international brands.
The World Fashion Center has its own internal management
organization, which is responsible for the overall management of the center (D

ontmoetingsplaats voor, 2009). It is possible to rent a showroom, tailored to your needs
and budget, which is why the showrooms are a great opportunity for young entrepreneurs
to show their collections and to raise brand awareness.
Strengths:
The WFC gives Amsterdam and fashion a lot of attention and awareness, what is very
optimistic for the future of both.
The WFC supports young entrepreneurs in the early stages of the development of
their brand/label.
Weakness:
A lot of competition for a starting company and high costs when you are not
supported by the WFC.
Amsterdam Fashion Week

Established in 2004 as an initiative to put Amsterdam on the map as an international
destination for Fashion. Twice a year, Fashion Week forms the centre-point of the Dutch
fashion world, with a full schedule of catwalk shows, trade fairs, presentations, lectures
and parties (About, 2009). The show is held at the former Gas Factories in Amsterdams
Westergas area, and caters to both you and established designers. With the growing
43

interest in Dutch Design', Amsterdam International Fashion Week attracts a growing
audience of directional international brands, buyers and press. Answering to immense
popular demand, Fashion Week DOWNTOWN consists of numerous public catwalk shows,
parties, shop launches, lectures and expositions, all organized in collaboration with local
museums, galleries, clubs and shops. Focusing on Amsterdam's reputation as an inspiring
city, the AIFW program combines commerce with creativity. Amsterdam has a lot to offer:
a growing pool of talent, an inspiring place to visit and a vibrant place to do business.
Strength:
The Fashion Week raises international awareness of Amsterdam as a fashion hotspot.
Weakness:
The fashion week does not have the international recognition, such as the fashion
weeks of Paris, Milan and NYC.
Catalan Fashion Action Plan, Barcelona

The government may also take part in increasing the exposure of the fashion market by
providing financial support to the development of the industry, such as Catalua has made
possible through the Catalan Fashion Action Plan. This is a government incentive, which is
to stimulate the market during the years 2007 2010. It is a collaboration between the
Government of Catalua and Barcelona City, and intended to revive the textile sector of
Barcelona. As a major element of the Catalan Fashion Action Plan, there will be hosted a
fashion show called 080 Barcelona Fashion that aims to increase the awareness of
Barcelona as an international fashion capital. According to the official website of 080
44

Barcelona Fashion, the main lines of action are as follows; internationalization, linking
creativity and industry, financial support, support to emerging talent and the organization
of a fashion event in the city of Barcelona intended to launch the Catalan capital onto the
international stage in the field of design and cutting-edge fashion. (080 Barcelona Fashion,
2009).
Strengths:
The fashion action plan implies a relationship between the Spanish Council, the strength
is the government support
Weakness:
The mentioned plan is only lasting until 2010, which indicates a tight time frame. It is
however likely that once the plan is fished another government-supported scheme will
begin.
Bread & Butter, Barcelona

As a tradeshow for selected brands, BREAD & BUTTER provided Barcelona with a concept
of an innovative trade fair event for the progressive, and contemporary clothing culture.
As an international specialist trade fair for Street and Urban Wear, BREAD & BUTTER
represented a marketing and communication platform for brands, labels and designers
from the areas of Denim, Sportswear, Street Fashion, Function Wear and Casual Dressed
Up, as well as for suppliers from the preliminary stage of the textile industry (Bread and
Butter, 2009)
45

Strengths:
With unique brand portfolio, BREAD & BUTTER confirms its position as the leading
international trade fair and trademark it is the meeting point for buyers, traders and
representatives from the textile industry press.
The tradeshow for selected brands brings together both inspiration and business
according to the basic principle of Fun & Profit. Its early date makes BREAD &
BUTTER the kick-off event within the industry.
Weakness:
Highly competitive and costly to organize such an event.
46

7.5 W HAT
KIND OF ( INFRASTRUCTU RAL ) SUPPORT DO YOUNG BEGINN ING
ENTREPRENEURS NEED TO BECOME SUCCESSFUL IN TH E FASHION INDUSTRY ?
W H AT
COU LD BE HELPFUL FOR THEIR CHANCES OF SUCCESS THAT COULD BE
PROVIDED BY ORGANIZATIONS LIKE TRADE - INDUSTRY , CITY COUNCI L , CHAMBER

OF COMMERCE , ETC ?
For the introduction of a collection is it required to have a good alignment of all the goods.
It is important to understand the supply chain and the various processes involved. An
entrepreneur should also be aware of the duration of the production process, so one
knows when the products can be expected in the store. An entrepreneur aims should to be
as close as possible to the consumer, in this way the company will get the right information
to meet the consumer requirements. To understand these issues it is important to look at
the turnovers and different styles in order to create a database, which can track all the
purchases. In this way it is able to see what the key products are. This so-called database
development is used as the basis for an ERP system. In this way, the management can
make the important decisions regarding the businesses. A just-in-time strategy is good way
to start for a young beginning entrepreneur, you have small inventories and you can keep
all the expenditures at a low point. Another option, which can make a difference, is to have
a good relationship with a supplier. In Amsterdam you can make use of the TNT Fashion
Group.
Transport TNT Fashion Group is a leading provider of integrated supply chain solutions for
the fashion and lifestyle industry. They work with track & trace system, so you can see at
which point the products are located at any moment, in this way both parties know when
the goods are received. These networks are supported by advanced technologies that TNT
Fashion Group enables to establish a reliable service to ensure real-time online information
about the status of the shipments.
It is therefore important for a beginning entrepreneur to know all the involving processes
of a just-in-time strategy, if you want to have a decent infrastructural basis.
47

7.6 I DENTIFY THE KEY SU CCESS FACTORS FOR SMALL START - UP FASH ION
COMPANIES . W H AT ROLE , IF ANY , CAN OR SHOU LD , THE CITY COUN CIL PLAY
THIS MATTER .
IN
According to Robert G. Cooper, one of the worlds foremost experts in product

development, the primary key success factor is a unique and superior product (The first and
most, 2004). It is a general concept, however it could also be applied to start-up fashion
companies. Such a product should meet the customers needs better than the competition,
at the same time be innovative and have a high product qualityamong other
characteristics (Top ten factors, 2002). Another important key success factor is a sharp and
consistent product definition, which should be in agreement with a strong market
orientation (Jerry & Lind, p. 40, 2007). In order to achieve a successful product the supplier
of the product needs a well-documented marketing plan, which clearly defines the needs
of the consumers, as well as having control over the brand.
Government supplied support schemes such as consulting and entrepreneurial aid are vital
to increase the probability of success for new ventures. Many entrepreneurs may lack basic
knowledge in various administrative areas of business, such as accounting and financing.
Aid, such as insightful management support and coaching, is useful to prepare and develop
the companys strategy (Top ten factors, 2002).
48

7.7 H OW
COU LD TH E CITY PROMOTE ITSELF BETTER AS A HOT SPOT FOR FASH ION
DESIGNERS AND ENTREPREN EURS ?

FORUMS ARE KEY IN THIS
W HAT
BUSINESS ?
CHAN NELS SHOULD BE USED , WH ICH
There are various methods that may be used to efficiently promote and thereby raise the
awareness of the fashion market in a city, however one of the key forums is events.
Barcelona has several programs in place to promote themselves as one of the fashion
capitals of Europe, some of them are:
One of the prominent ways of exposing a city to the fashion industry is by hosting a fashion
week or similar events, which enables designers to showcase their collections. BREAD &
BUTTER has for the last four years hosted the semi-annual Barcelona Fashion Week, which
has served as a international platform for promoting the brands and designers from the
Denim, Sportswear, Street Fashion, Function Wear and Casual Dressed Up segments of the
market. The summer 2009 exhibition has been cancelled, and returned to Berlin where it
originated (BREAD & BUTTER, 2009). In 2008 BREAD & BUTTER Barcelona was visited by
more than 90 000 people from over 100 countries, which is an increase of 50% from the
previous show (Canut, C, p.18-19, 2009).
Another way of increasing the awareness of a city as a fashion capital could be by linking
the city with a brand, as the Barcelona managed when they signed a branding agreement
with MANGO - the international clothing retailer. This agreement comes as a part of the
Catalan Fashion Action Plan, in an attempt to grow the fashion retail market in the region.
Through this agreement Barcelona seeks to raise awareness of Barcelona as a fashion
centre in Europe by including their brand on some of the clothing items (Mango and the
Barcelona, 2008).
One issue facing Amsterdam and Barcelona compared to the key fashion cities in the world
is money. The fashion shows in NYC, Paris, Milan and London are larger in scale than the
49

shows in Amsterdam and Barcelona. Big sponsors are providing the money needed to
organize a great event.
Other solutions are necessary to get a unique position in the world of fashion. Using a
different kind of strategy would help these cities:
Focus on Niche markets.
The Dutch culture is very casual. The Denim market is very big and they could
differentiate themselves by focus their strategy on this niche market.
The Spanish fashion market is very focused on upcoming designers.

Although London has a position in the market by supporting upcoming designers,
Barcelona could maybe do that for the Mediterranean designers
50

7.8 W HAT
COULD
A MSTERDAM
AN D
B ARCE LONA
LEARN FROM EACH OTHER ?
There are two major differences between Barcelona and Amsterdam support in Fashion. As
mentioned before, Amsterdam has the biggest trade centre in the world and Barcelona has
a leading international trade fair. Both companies/events are unique and could provide
very interesting knowledge for each party. The WFC supports fashion designers in a
different way than a trade fair and the other way around. This information is very useful for
both parties to maybe apply in future projects.
When working in a global commercial environment, knowledge of the impact of cultural

differences is one of the keys to international business success. Improving levels of cultural
awareness can help companies build international competencies and enable individuals to
become more globally sensitive (World Business Culture, 2009).
Each city has their own values and traditions. There are also significant variations in the
way societies organize themselves, in their shared conception of morality and in the ways
they interact with their environment. That is an interesting point when you want to make
your company international successful.
51

7.9 G IVE 2
CONCRETE PRACTICAL AND PROFI TABLE IDEAS HOW EACH CI TY COULD
IMPROVE THEIR POSITION AS A H OT SPOT IN THE FASHION INDUSTRY .
In the fashion area of the city, an idea could be to put up high-resolution cameras n order
to capture the real fashion on the streets. The cameras should automatically take
pictures of individuals every minute. The taken photos could later be used and shown on a
big screen at an appropriate location. During special occasions or day, one could hire a
fashion expert or/and a visual artist to compose the screen. To make the whole thing a bit
more profitable you can implement some advertising in the fashion pictures, e.g. were to
buy particular items.
A second proposal could be to arrange a catwalk in centre of the city, with local brands and
designers who expose their collections together with other artists. This arrangement could
result in increased goodwill, which in the long term can give the city a better reputation as
a fashion city.
52

8. B IBLIOGRAPHY
8.1 A MSTERDAM
Alison van der Lande, 2009
Available URL: http://www.alisonvanderlande.co.uk/index2.html
Date Viewed: April 12th 2009
Clean Chic, 2006

Available URL: http://www.peopleplanetprofit.be/beelden/riannedewitte.pdf
Date Viewed: April 28h 2009
CBS, 2009
Available URL: www.cbs.nl
Lupo, 2009
Available URL: http://www.lupo.es/lupoeng.htm
NIBUD, 2009
Available URL: www.NIBUD.nl
Pepe Alba, 2009

Available URL: http://pepe-alba.com/about.htm
53

PhilineOnline, 2009
Available URL: http://www.philineonline.com/index.html
Rabobank, 2009
Available URL: www.rabobank.nl
Zamoy, 2009
Available URL: http://www.zomoy.com/zomoy.php?id=zomoy
Date viewed: April 12th 2009
8.2 B ARCELONA
EU China textile agreement10 June 2005; Memo, 2005
Available URL: http://www.epp-ed.eu/wto/docs/eu-china-textile-en.pdf s
European Foundation for the Improvement of Living and Working Conditions, 2008
Available URL: www.eurofound.europa.eu
Orozco, C. (2009, April 17). About Caorta. (H. Ghiri, Interviewer)

54

Phase-out of the Multi Fiber Arrangement (MFA) and its Implications for Workers
Available URL: http://www.iccr.org/issues/css/mfa_factsheet.htm
Textiles, 2009
Available URL:http://www.wto.org/english/tratop_e/texti_e/texti_e.htm
TEXTILES and CLOTHING, 2008

Available URL: http://ec.europa.eu/enterprise/textile/statistics.htm
Trends and drivers of change in the European textiles and clothing sector: Mapping
report, 2008
Available URL: http://www.eurofound.europa.eu/pubdocs/2008/46/en/1/ef0846en.pdf
Types of fashion, 2008
Available URL: http://www.designedesp4u.com/types_fation.php
Date viewed: April 22nd 2009
8.3 E UROPEAN F ASHI ON M ARKET

080 Barcelona Fashion
Available URL: www.080barcelonafashion.com
Last Viewed: 28 April 2009
55

About, Amsterdam International Fashion Week, 2009

Available URL: http://www.amsterdamfashionweek.com/aifw/about-aifw
A Stella Turnout, Vogue, 2008

Available URL: http://www.vogue.co.uk/news/daily/080704-stella-mccartneylaunches-organic-c.aspx
BREAD & BUTTER, 2009

Available URL: www.breadandbutter.com
Canut, Camilla. Barcelona Style 2009. p.18-19.
Christina. (2009, March 23). Fashion capitals of the world, Christina, 2009
Available URL: http://www.fashion4ward.net/fashion-capitals-of-the-world/
D ontmoetingsplaats voor de mode, 2009

Available URL: http://www.worldfashioncentre.nl/index.php?documentID=59
Europe's Fashionistas Go Organic, DEUTSCHE WELLE, 2007

Available URL: http://www.dw-world.de/dw/article/0,2144,2737180,00.html
56

Financial Crisis Could Be Fashion Hazard, 2008

Available URL: http://www.wwd.com/business-news/financial-crisis-could-befashion-hazard-1782336
High End Designers in Low Prices, 2009

Available URL: http://www.ermou.gr/blog/en/2009/04/designers-prices/
Jerry, K., & Lind, S. (2007, June 21). Key success factors p.40. Retrieved April 30,
2009, from Hgskoloan i Jnkping:
Available URL: http://hj.diva-portal.org/smash/get/diva2:3553/FULLTEXT01
Jones, S. J. (2005). Global context. In Fashion Design (pp. 35-47).

Laurence King Publishing.
Luxury groups eye retail therapy, 2009

Available URL: http://www.ft.com/cms/s/0/d68da47a-35b7-11de-a99700144feabdc0,dwp_uuid=9ecd64fe-3300-11dd-8a25-0000779fd2ac.html
Mango and the Barcelona City Council, 2008

Available URL: http://news.mango.com/?p=811&lang=en
57

New York tops list of worlds fashion cities, Reuters, 2007
Available URL:
http://www.reuters.com/article/lifestyleMolt/idUSN1724237520070718?sp=true
Prada lays foundations for future growth, 2009

Available URL: http://www.ft.com/cms/s/0/4242ff68-3413-11de-9eea00144feabdc0.html?nclick_check=1
The Big Question: What is the point of London Fashion Week, and does it matter?
Available URL: http://www.independent.co.uk/news/uk/this-britain/the-bigquestion-what-is-the-point-of-london-fashion-week-and-does-it-matter-402780.html
The first and most important P, Vaughan. 2004.

Available URL: http://www.jvmarketing.co.nz/perspective/
the+first+and+most+important+P!.html
Top ten factors, Squires, T, 2002.

Available URL: http://www.ascent-grp.com/publish/pdf/NProdSuccLess.pdf
World Business Culture, 2009

Available URL: http://www.worldbusinessculture.com/
58

9. Appendices
9.1 IGNOOR A PPENDICES
59

60

61

62

63

64

65

9.2 C AO RTA A PPENDICES

9.2.1 I NDUSTRY O VE RVIEW
Textile & Clothing, EU
2007
Total employment
% growth
2006/2007
2.474.932
Total number of
firms
-6.4%
175.830
Source: Textile and Clothing
9.2.2 - E XTERNAL T RADE , EU

External trade, EU (million )
2004
2005
2006
2007
% growth
2004/2007
Import
62
662
67
379
75
358
78
934
26,0%
Export
31
905
32
594
34
580
36
005
12,9%
Import
45
052
49
305
55
491
58
079
28,9%
Export
13
368
14
112
1536
2
16
625
24,4%
Textile &
Clothing
Clothing
Source: Textile and Clothing

66

9.2.3 - T O P 10 EU M ARKETS
IN
C LOTHING
Top 10 EU Markets in Clothing (million )

2004
2005
2006
2007
% Growth
2004/2007
13
368
14
112
15
362
16
625
24,4%
Switzerland
2 499
2 579
2 690
2 830
13,2%
Russia
1 297
1 677
2 214
2 779
114,4%
USA
2 192
2 110
2 056
2 002
-8,7%
Japan
1 249
1 251
1 226
1 136
-9,1%
Hong Kong
500
559
619
731
46,2%
Norway
659
688
674
711
7,9%
Ukrainia
252
303
405
527
109%
Turkey
323
330
407
465
44%
UAE
294
272
354
442
50,1%
South
Korea
268
301
345
375
40,1%
World
Source: Trends and drivers of change in the European textiles and clothing sector
67

9.2.4 Q UESTIONN AIRE
FORM U SED I N INTERVI EWS
General Information
Options:
Sex
Male
Answers:
0
Female
Age
150
-20
20-30
33
30-40
48
40-60
63
60+
Income
Where do you live in

Barcelona?
under avrage(0-16500)
16
above avrage(16500-30000)
78
high(30000 +)
56
Central
35
North
10
South
West
74
East
25
Outside
Buyer Behaviour
68

Are you interested in fashion?
What does clothing items

signalise to you?
What do you think about the

idea of buying clothes in an art
gallery?
How many times do you visit

art galleries annualy?
How brand loyal are you?
Yes
85
No
65
Necessity
50
Interest
80
Pleasure
15
Art
not interesting
Somewhat interesting
95
very interesting
55
1-3
100
3-6
25
6+
20
Very
Somewhat
40
Not at all
35
I dont care
70
69

How frequently do you

purchase clothing items per
month?
1-4
How much do you spend on

clothing items per month?
108
5 - 10
30
10 +
12
0 - 100
60
100 - 250
55
250 - 500
35
500 - 1000
1000+
Where do you purchase your

clothing items?
Have you heard about the

brand Caorta?
Major retailers
91
High street
30
Boutiques
25
Designer
Heute Couture
Yes
No
150
70

Price Sensitivty
How much would you spend on
the following items;
- Dress
0 - 100
100 - 250
250 - 500
500 - 1000
1000+
- Pants
0 - 100
100 - 250
250 - 500
500 - 1000
1000+
- Jacket
0 - 100
100 - 250
250 - 500
500 - 1000
1000+
- Shirt
0 - 100
100 - 250
250 - 500
500 - 1000
1000+
71

Financial Crisis
Yes
Has the financial crisis

impacted you buyer
behaviour?
No
If yes, to what extent?
139
11
Don't Know
Very negative
Negative
135
Positive
72

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Marketing Plan for the fashion brands

Lecturer: Ms Isabel Mut & Mr Alberga

Hiva Ghiri, Fredrik Gunnarsson and

Tom Jonk, Romy Hesp, Rachel Cladder,

Ivo Deumens and Harold Reitsma

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

1.T ERMS OF R EFERENCE

2. P ROCEDURES & M ETHODOLOGY

Please refer to the attached bibliography for further information.

Marketing Plan for Caorta and IGNOOR, and

3. O VERVIEW OF THE S ECTOR

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

4.2 C AO RTA , B ARCELONA

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

5.3 SWOT A N ALYSIS

Marketing Plan for Caorta and IGNOOR, and

5.4 C OMPETITIVE A NALYSIS

Cross Domestic Product

Marketing Plan for Caorta and IGNOOR, and

Expenditures in clothing and leather industry

Number of highly educated women

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

(NIBUD, 2009; Clean Chic, 2006; CBS, 2009; Rabobank, 2009.)

Spanish leather goods have an

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

She can send an email to

rtlboulevard@rtl.nl or she must contact Jaap Paulsen because he is the contact

Marketing Plan for Caorta and IGNOOR, and

Press releases to fashion magazines

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Famous Dutch person

The total budget for the promotion will be around 2650.

Marketing Plan for Caorta and IGNOOR, and

The targeted consumer in this segment could be illustrated by this table:

Middle, high paid jobs-

Creative, liberal open minded, pro-active,

Art, modern art, culture, food, wine, fashion

Travelling- culture awareness

Marketing Plan for Caorta and IGNOOR, and

Grcia, - in house (studio, art galleries)

Some sense of brand loyalty, brand loyal

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and

6.3 C OMPETITIVE A NALYSIS

Marketing Plan for Caorta and IGNOOR, and

Marketing Plan for Caorta and IGNOOR, and